By: ANG Reporter
Rea Vaya bus services have been halted after drivers embarked on a strike following infighting among shareholders and threats of non-payment of salaries.
According to sources, the strike started on Wednesday (March 22) after shareholders at Operating Company, Piotrans went to Rea Vaya depot. “They started fighting, with the one group demanding that the current group that is running the administration to leave so that they can take over administration,” said the source.
He added that the drivers felt unsafe as they had also been sent messages saying their salaries for March would be delayed. “Sadly, the drivers were not informed how long the delays in paying their salaries would be and when exactly they would be paid. That was the cause of the strike that is happening now.
City of Joburg MMC for Roads and Transport Councillor Kenny Kunene confirmed that Rea Vaya is not on the road. He told Africa News Global that he was meeting with the Pio Trans shareholders, Rea Vaya drivers as well as union shopstewards.
When asked when the matter would be resolved, Kunene indicated that he had given instruction that legal advice be sought as to what legal process needed to be followed to put Pio Trans under administration “so that we can now be able to appoint an administrator”. “If we go that route, this will ensure that drivers are paid and administrator will run Rea Vaya so that shareholders can also get their dividends. As things stand, the two groups at Rea Vaya are now the cause of our problems. This is a huge inconvenience to commuters who rely on this service.”
“We apologize for the inconvenience and we hope to make serious interventions that will ensure that the service resumes and busses hit the road,” said Kunene. City of Johannesburg Executive Director of Transport Dorothy Mabuza said Piotrans is a private company contracted under the Rea Vaya brand.
Mabuza added: “The City has no locus standi in the company’s operational arrangements suffice for contract management. It remains the City’s interest that commuters have seamless access to public transport and inherently stimulate economic growth and hence a close monitoring and engagement where possible to resolve challenges.”
ABOUT REA VAYA
Piotrans is the name of the first Rea Vaya Bus Operating Company (BOC), the first high capacity bus rapid transit system (BRT) system implemented in Africa, popularly known as Rea Vaya.
The company entered into a 12-year contract with Rea Vaya in 2011.
This is a relationship between the City of Johannesburg and nine taxi associations, which are owned by over 300 taxi operators. These nine taxi-operating companies are known as TOICS (Taxi Operation Investment Companies) who are all shareholders.
The owners of 317 minibus taxis were paid R263-million for agreeing to have their vehicles taken off the road.
Each owner pocketed about R830,000 per taxi, referred to as compensation for restraint of trade, a condition for removing the taxi off the road in favour of Rea Vaya busses. In addition to the compensation, taxi owners will also be paid R2.6-billion, or R221-million annually, to operate the bus system for the next 12 years.
