The People And Customer Effects Of Bus Reforms In South Africa

Abstract

Bus reforms in South Africa have had a dramatic impact on people (employees) and customers (passengers), especially during the last five to ten years. These so-called soft issues are sometimes overlooked in favour of the policy and structural issues. The main focus of this paper is on the people and customer effects of the bus reforms and not on the operational effects. These effects also had an impact on travel patterns, service levels, etc and although customers were on the receiving end of such changes, most of these issues fall outside the scope of this paper. An attempt is made to critically evaluate these effects and to propose solutions. The following are some of the more important effects that have become noticeable throughout the commuter bus industry: · Pre- and post tender pressures resulted in a substantial rationalisation of services and organisations. · The demarcation of tenders resulted in smaller operating entities, which in turn have a dramatic impact on people and management practices. · Large numbers of people were retrenched. Managing a downsized operation has become the key challenge. · Manpower costs have become a source of competitive advantage to secure tenders with negative effects on the continued employment of high calibre staff. · Organised labour fiercely resists reforms that could lead to further job losses and practices that weaken the position of employees. · Former training and development functions were severely rationalised or discontinued as a result of cost pressures. · Accelerated Black Economic Empowerment (BEE) has become a national policy focus. The industry made considerable progress on the BEE agenda. · The penalty system of tendered contracts redefined customer focus. · Fewer people employed in the bus industry and more demanding customers have become the key challenges. Proposed solutions include closer cooperation with organised labour, replacement of a career orientation with an entrepreneurial orientation, accelerated training and development, reassessment of the impact of lower remuneration, full implementation of the tender system, multi skilling, more focused customer care training and further research to substantiate the people and customer effects of bus reforms.