No UIF pick-up for minibus drivers
● As the national lockdown grinds into its second month, minibus taxi drivers will not be lining up to claim unemployment money — even though a 15-year-old sectoral determination signed by the government says they should be able to.
Transport minister Fikile Mbalula said at a recent briefing that because the taxi industry is not regulated, the industry’s 200,000 employees — mostly drivers and taxi-rank marshals — are not eligible for Unemployment Insurance Fund (UIF) payments.
But the Taxi Industry Sectoral Determination — which was thrashed out by the South African National Taxi Council (Santaco), the official government-recognised representative of the industry, and the department of labour, and launched with fanfare in April 2005 — instructed taxi operators to begin making UIF contributions for their drivers along with guaranteeing other benefits such as paid leave and overtime pay.
Never implemented
Despite being published in the Government Gazette on April 28 2005, the determination was never implemented, said public transport analyst Paul Browning.
“I can assure you that it remains in force and has not been rescinded,” he said.
Though the agreement does not specifically state that taxi owners must register for UIF so that their drivers are covered, the labour department takes it for granted that employers comply with the Unemployment Insurance Act 2001, he said.
Section 6 of the determination states that every payday the employer must give the employee a pay slip that includes the employer’s UIF registration number and the employer’s contributions to the fund.
The initiative was brokered by the labour minister at the time, Membathisi Mdladlana, and the transport department acknowledged the determination in the National Land Transport Act 2009, said Browning.
“This says that an applicant for an operating licence — which authorises the taxi to offer public transport services — will comply with labour laws,” he said.
There are an estimated 150,000 public minibus taxis, spread across 20,000 owners and with an annual turnover of about R16.5bn, according to Arrive Alive statistics.
The government’s failure to hold the taxi to account has now been harshly exposed by the lockdown as commuters stay home while those taxis still operating may only carry 100% capacity if all passengers were wearing surgical N95 respirator or surgical masks and 70% loading if they weren’t.
Santaco president Phillip Taaibosch said it was not the case that the taxi industry did not want to help its drivers. “I am not going to lie,” he said, “but [some] taxi operators need to be educated around issues of labour.”
Taaibosch said one of the problems facing operators was that many drivers refused to be permanently employed and preferred to work on commission.
Another issue was the lack of government subsidies. While public bus transport is subsidised, taxis are not.
Taxi fares are determined by what commuters can afford, leading to owners struggling to cover costs such as buying and maintaining vehicles.
“You might have 11 passengers today, tomorrow only eight,” said Taaibosch “They are working hand to mouth.”
In rural areas a taxi might earn its owner less than R1,000 a week. “So how must the owner comply with regulations?”
Adverse impact
Taaibosch declined to comment on the industry’s continuing discussions with the government over financial relief during the lockdown.
“For now I am going to refrain from saying anything about that,” he said.
Mbalula said the department was “fully aware” of the agreement and of the adverse impact on drivers and other employees of taxi owners not complying with the legislation. The issue would be raised at the forthcoming National Taxi Indaba, he said.