Cape Town – Calls are mounting to prevent the closure of long haul bus operators Greyhound and Citiliner, with unions fearing for the jobs of nearly 700 workers.
This after Unitrans Passenger, which owns Greyhound, Magic Transfers and Megabus services, announced on Tuesday they would close operations on February 14.
National Union of Metalworkers of SA (Numsa) general secretary, Irvin Jim, said they received a section 189 notice from Unitrans Passenger, stating the company contemplated the closure of its business.
Jim said Unitrans said its business was negatively affected by the Covid-19 restrictions placed on travel.
He said the management claimed the organisation experienced “extremely difficult trading conditions'' which have negatively affected the company’s financial performance.
"Unitrans Passenger had more than 3 000 employees from its various passenger divisions. About 693 employees will be affected by the contemplated closure of the companies Greyhound, Magic Bus and Megabus Midrand," said Jim.
Democratised Transport Logistics and Allied Workers Union (Detawu) general secretary, Vusi Ntshangase, said the union would do everything in its power to oppose any attempt to close down the bus operator.
"We have to question why the company did not opt to go into business rescue when it found itself in financial dire straits. Doing so would have afforded it a real chance to pivot the business, save hundreds of jobs and even sell it as a going concern – if that is what it really intended," said Ntshangase.
He said the manner in which the process was handled leaves them questioning if the company was really not economically viable.
"Is the holding company perhaps using the Covid-19 pandemic as an excuse to offload Greyhound and Magic Transfers?" he asked.
Cosatu spokesperson Sizwe Pamla said the pending closure of the service was a regrettable tragedy and called on the government to intervene and try to rescue the “depressing situation“.
Pamla said the decision plunged thousands of workers and their families into poverty and despair, saying the company must also pay all monies owed to those workers.
Unitrans Passenger's Operations executive Jasen Smallbone said despite a number of management actions to reduce operating costs, optimise routes and introduce new technology and coaches, the operations were unable to return to profitability.
Smallbone said the company was unsuccessful in its attempts to sell the Greyhound and Citiliner operations.
"The company is consulting with all the affected stakeholders in contemplation of closure of the business," said Smallbone.
Cape Argus