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Creating a workplace where our people can excel


Change management and mobilisation

The change management function focuses on the development of appropriate interventions and strategies, as well as building and enhancing organisational capability to enable successful execution and implementation of key human resource programmes.

During the year emphasis was on developing a change management strategy and communication plans to enable the successful execution of the next phase of SAP HCM (Human Capital Management) and shared services programmes.

Employment equity (EE)

Although transformation and employment equity continues to pose a challenge, particularly due to the highly operational work environment, steady progress has been made to improve the representation of designated employees.

EE scorecard

Total employees 45 564


Black management as a % of all management 60%


Female management as a % of all management 25%


Employees with physical disabilities as a % of total employees 1%
7% versus 2009
2% versus 2009
3% versus 2009
as previous year

The reduction in the total number of employees is attributable to:

  • A moratorium on external recruitment as part of the overall cost containment strategy; and
  • The transfer of employees following the disposal of Shosholoza Meyl to Prasa.

The development of human capital is fundamental in advancing Transnet’s goal to become an employer of choice. The Company’s people philosophy is to build an organisation of talented, competent and inspired employees who not only support the Quantum Leap Strategy, but also subscribe to its organisational values.

The implementation of the human resources strategy remains focused on performance management and reward, capacity building, talent management, leadership development, culture change, employee relations and human resource enablement through human resource systems and processes.

Employment equity targets 2013

Occupational level Black employees Female employees PWDs*
Top management 75,0% 38,0% 1,5%
Senior management 65,0% 30,0%  
Professional 65,0% 30,0%  
Skilled technical 65,0% 30,0%  
Semi-skilled 87,3%* 22,5%  
Unskilled 87,3%* 15,0%  
Total 75,0% 25,0%  

*People with disabilities.

Employment equity 2010

  Indian (1) African (2) Coloured (3) Black (1+2+3) White (4) Total (5) Total (6)
Employees F M F M F M F M F M F M F+M
Transnet consolidated                          
Management 124 367 616 1 021 116 290 856 1 678 215 1 497 1 071 3 175 4 246
Non-managerial 222 1 033 5 363 21 131 778 3 215 6 363 25 379 1 134 8 442 7 497 33 821 41 318
Total – 2010 346 1 400 5 979 22 152 894 3 505 7 219 27 057 1 349 9 939 8 568 36 996 45 564
% 1% 3% 13% 49% 2% 8% 16% 59% 3% 22% 19% 81% 100%
Management 131 405 850 1 672 126 355 1 107 2 432 235 2 368 1 342 4 800 6 142
Non-managerial 211 1 048 5 225 21 872 813 3 390 6 249 26 310 1 225 8 852 7 474 35 162 42 636
Total – 2009 342 1 453 6 075 23 544 939 3 745 7 356 28 742 1 460 11 220 8 816 39 962 48 778
% 1% 3% 12% 48% 2% 8% 15% 59% 3% 23% 18% 82% 100%

Change management and mobilisation

We said we will  
Establish a national change management implementation structure, and Operating division structure to support "Go-Live" timelines.
Continue with leadership alignment and engagement to strengthen the change management process.
Engage with relevant stakeholders on the change management implementation approach.

We plan to
Prepare the Company from a change management perspective for implementation of the HCM Programme with "Go-Live" commencing across the Group in a staggered roll-out sequence from 1 July 2010 onwards.
Conduct change readiness assessments with relevant stakeholders to determine the type of change interventions required to ensure successful implementation.

Employment equity

We said we will  
Develop Transnet Employment Equity (EE) plan: April 2010 - March 2013, incorporating annual targets.
Include gender and disability strategies in the Transnet EE plan for April 2010 - March 2013.
Embed the use of new target setting and monitoring tools to track progress of EE processes.
Conduct a research project to determine the status of people with disabilities and of women in Transnet, the findings of which will inform the EE strategies and interventions for these groups.

We plan to
Implement the strategies as outlined in the Transnet EE plan.
Communicate the Transnet EE Plan across the business.
Integrate and align EE interventions with culture interventions.

Transnet culture

Transnet aims to project itself as a company that is reliable, trustworthy, responsive and safe, with employees who are committed, safety-conscious, accountable, ethical, disciplined, and results-orientated.

Cultural principles, as exemplified in the Culture Charter Programme, continue to be embedded throughout the Company. Whilst more work is required to align human resources to the needs of the Company, particularly the skills sets to sustain the future strategy, considerable progress has already been made.

Culture Charter scorecard
Safety mindset 2,56 Good communication 2,21 Dignity and respect 2,18 Empowered 2,08
0,06 versus 2009
0,05 versus 2009
0,06 versus 2009
0,03 versus 2009
More than 23 000 employees scored the Culture Charter in the annual scoring process conducted during September 2009. Business focused 2,49 Reward good work 2,08 Deliver 2,39
0,07 versus 2009
0,1 versus 2009
0,08 versus 2009

The charter is scored on a three-point scale. Overall the scores for all seven behaviours were slightly lower when compared to the previous year. Safety mindset continues to score high, and although dignity and respect did not score the lowest, employees have indicated that Transnet should prioritise this specific behaviour for improvement.

Transnet employees have identified the following behaviours to underpin these values:

Transnet culture

We said we will  
Conduct the Leadership Charter (LC) 360 review rating at extended Executive Committee level.
Implement the First Line Management Engagement Programme (FLMEP) at Saldanha, Bloemfontein, Durban and Richards Bay.
Implement the LC at the next level of management.

We plan to
Integrate and align the results of the LC with the talent and performance management processes.
Incorporate the LC into HR processes such as recruitment and selection as well as capacity building.
Incorporate a revised FLMEP as part of the safety culture programme, specifically targeting the 13 sites at which the Level 1 programme will be implemented.
Increase awareness and visibility of the Culture Charter through effective communication.
Continue to roll out the employee engagement programme aimed at promoting and marketing the Culture Charter behaviours to all employees. The programme will be based on the outcomes of the scoring results and will align with the safety culture programme.
Continue to engage Operating division leadership on the scoring results and address priority areas. Monitor implementation of priority interventions.
Conduct annual Culture Charter scoring during September 2010.
Continue to engage Operating division champions through 'activation workshops' and a communication programme. Champion networks will be utilised to assist employees in understanding and mobilising the safety culture programme in terms of the "golden safety actions", the annual scoring of the charter, as well as the implementation of any additional Living the Charter programmes that have been identified as key interventions.

Stakeholder perspective

"I think that the safety culture programme is superb! The workers are far more aware of safety. They are putting a lot more attention into safety and are generally acting in a safer way within the workplace."

Chris Coetzee
Track Inspector
Freight Rail – Bellville

Stakeholder perspective

"I think that the safety culture programme is good, and it works! Our employees have been participating in the safety related competitions and meetings. Our safety reps are all really excited about safety and everyone wants to work safe."

Piet Babers
Yard master
Freight Rail – Bellville


Capacity building and skills development

Transnet's capacity building programmes support the Company's human resource development aspirations by focusing on the creation of an integrated platform to enhance sustainable people development. Transnet's approach to skills development entails the creation of an integrated value chain from secondary educational institutions, through tertiary educational institutions and Transnet Schools of Excellence and into the workplace.

Skills development scorecard
Training spend
R389 million
Training as a % of total personnel costs 3%
0,2% versus 2009
2011 target 3,4% Industry average 2,8%

Bursar pool 2010
12 learners on the Training Outside Public Practice (TOPP) programme Registered 6 artisan trade-test centres and 37 trade test officers 1 100 artisan apprentices and 284 technicians in the engineering skills pipeline
30 learners supported on the Thuthuka programme* 24 graduates on the Graduate in Training (GIT) programme** 377 engineers in the engineering skills pipeline

*A programme aimed at placing African and Coloured students at selected accredited universities.
** Commercial and social science graduates that receive workplace exposure through a structured two-year programme.

Capacity building and skills development

We said we will  
Implement and institutionalise a governance framework for capacity building by establishing capacity building forums, standardising policies and developing BBBEE reporting frameworks across the business.
Institutionalise the BBBEE reporting framework by consolidated tracking and reporting of workplace skills plans and annual training reports.
Implement processes and procedures for the DPE 'executive dashboard' which serves to report on skills development.
Establish a technical skills pipeline for engineers, technicians and artisans.
Optimise training centre capacity in line with operational training needs.
Introduce the Accelerated Artisan Development Programme (Four trades)

We plan to
Design and develop capacity building policies for the Young Professionals Development Programme to enable the payment of professional fees and structure short courses.
Refine skills reporting on the DPE dashboard and extend reporting to other operational skills pipelines.
Confirm the long-term planning of operational skills for Transnet.
Continue to develop engineering skills in line with the technical skills strategy.
Continue optimised service delivery in the "Schools of Excellence".
Increase registration of trade test officers as well as the number of trades on which Transnet can conduct trade tests.
Expand the Accelerated Artisan Development Programme to other trades within Transnet.

Talent management and leadership

Transnet strives to have the right people with the right skills in the right job at the right time. The 'war for talent' across organisations, however, continues and with companies today operating under unprecedented conditions of competition and turbulence, it is increasingly difficult to attract and retain talented employees. To facilitate growth, Transnet will continue to differentiate its approach in attracting, managing, developing and retaining talent.

Transnet's leadership development programme aims to raise the level of leadership competence and performance excellence in the Company. The Navigator Leadership Development Programme focuses on core leadership competence designed around behaviour change and is informed by the Transnet leadership competency framework.

Talent management scorecard

Increased the number of delegates that attended the Navigator programme (Phase 1 and 2) from 3 389 to 4 212


Employee turnover rate 8,4% compared to an average of 8,3% last year


Talent management and leadership

We said we will  
Design and implement an Executive Leadership Development Programme (ELDP) framework for the Extended Executive Committee and senior management.
Roll out Transnet's talent management strategy to all management levels.
Plot talent management on a talent matrix at all levels to inform succession planning.
Roll out the Navigator Leadership Development Programme (NLDP).

We plan to
Continue with the roll-out of the ELDP and NLDP.
Continue to develop succession pools for all levels of employees and conduct talent review forums to support the further development of strategies to retain top talent.

Performance and reward

Transnet's performance and reward system focuses on the development and implementation of a system that supports the Quantum Leap Strategy, drives a high performance culture, and dovetails with reward, capacity building and talent management initiatives.

The integrated reward system (financial and non-financial) that supports the Quantum Leap Strategy, is competitive, rewards desired behaviours and performance, and retains talent.

During the year, Transnet completed the implementation of the new reward dispensation for scarce and critical skills employee categories in the bargaining unit, including first-line managers, specialists, technicians, artisans, train drivers and TCOs 2.1 – 3.2.

A new grade structure for all management employees was implemented, resulting in a single grade and pay structure for all management employees across Transnet.

The Company has successfully rolled out the revised incentive scheme for bargaining unit employees, consisting of an annual on-target bonus component to achieve performance targets as well as a quarterly gain-share bonus component, which is payable when approved targets are exceeded. The process of integrating behaviour assessment instruments with performance management by conducting 3600 reviews is ongoing.

Performance reward

We said we will  
Implement the long-term incentive scheme for Group Executive Committee and Extended Executive Committee members as well as certain grade level C employees.
Ensure that all organisation management data for Transnet is 'cleansed' and ready for migration to the new SAP HCM on the specified go-live dates.
Finalise the Leadership Behaviour Charter and communicate to all employees.
Conduct performance management training and draft individual strategic performance objectives (SPO) ratings for all first-line managers, specialists and technicians (FSTs).

We plan to
Extend the new competency-based reward dispensation to all bargaining unit employees.
Implement a single grade structure for all bargaining unit employees whilst extending the new reward dispensation to the rest of the bargaining unit employees.
Refine the gain share scheme for bargaining unit employees to ensure that primary value drivers are aligned with key performance indicators as per the Shareholder’s Compact.
Define and implement Group modifiers for the longterm incentive scheme as per the objectives in the Shareholder’s Compact.
Institutionalise a ‘culture of behaviour’ assessment.
Align the annual salary adjustments of FSTs with their individual SPO rating.

Human resources enablement

Transnet Human Resources embarked on a Group-wide HCM solution with the objective to implement a single human resources system for Transnet. Process analysis was conducted to determine the extent of the differences in the design, configuration, processes, controls and level of implementation on current systems utilised in the different Operating divisions.

The outcome of the solution analysis project led to the approval to proceed with a detailed design project to standardise and consolidate SAP - HCM processes and solutions across Transnet. The envisioned end state is a new human resources service organisation, enabled by a single human resources and payroll solution for Transnet.

Parallel to the HCM systems project, Transnet decided to conduct a human resources shared services analysis project as part of the overall transformation of the Company's human resources environment. The objective of the analysis is to evaluate the viability of implementing a human resources shared services model for Transnet.

Human resources management

We said we will  
Design, build, test and implement a robust HCM system in two phases that involves roll-out of payroll, personnel administration, organisation management, time management, performance management, talent management and recruitment modules of the system solution.
Embark on a design project to standardise and consolidate the HCM processes and systems across all the Operating divisions.

We plan to
Implement the standardised processes as part of the HCM roll-out plan and further strengthen standardisation and consolidation via the shared service design.
Monitor deviation from standards via the Change Control Board (CAB).


Transnet's workforce reflects a relatively high level of unionisation and, in the pursuit of progressive labour relations policies and practices, the weak first-line management capacity requires further strengthening.

Employee relations scorecard
1 398 man-days lost due to industrial action* 84% junior unionised employees (including fixed term contractors)
45% Utatu
39% Satawu
Disciplinary action 11% of workforce
186,4% versus 2009
86% (excluding fixed term contractors) versus 2009
4,0% versus 2009

*All the man-days lost were due to unprotected strike action.

Employee relations

We said we will  
Implement the Transnet Recognition Agreement (TRA) by establishing streamlined consultation structures; reducing the number of national and divisional full-time shop stewards; and implementing the agency shop agreement.
Consult on, approve and implement 12 new Group-wide policies, including the racism policy and the incapacity management policy for bargaining unit employees.
Finalise, ratify and implement the grievance procedure for bargaining unit employees.
Commence negotiations on a new Transnet-wide disciplinary code and procedure for bargaining unit employees.
Consult trade unions on the implementation of Government policy in respect of the concessioning of Ship Repair Services in National Ports Authority and branch lines in Freight Rail.
Enable meaningful two-way transparent interaction and strategic engagement on business challenges through the SLF.
Develop and implement a tracking tool that allows for trend analysis and promotes consistency in the application of sanctions.
Implement the reward model for artisans, train movement personnel and FSTs.

We plan to
Align shop steward numbers to the TRA calculation and provide training to new shop stewards.
Continue to monitor the management of time-off for shop stewards.
Assess and improve the effectiveness of consultative structures.
Coordinate the implementation of the racism policy.
Continue to consult trade unions on new policies.
Continue building positive and productive relationships with unions and employees by ensuring adherence to policies and agreements and limiting the number of disputes lodged.
Implement a standardised sanction code as well as the SAP ER component that captures and tracks disciplinary cases.
Finalise negotiations with trade unions and support the implementation of the competency-based reward strategy for bargaining unit employees in line with initiatives to reshape the workforce.


Transnet recognises that employee wellness is an intangible business asset and an investment in business success. Transnet hopes to create a working environment and culture which encourages employees to shape their behaviour and attitudes to embrace the personal importance of being safe, healthy, well and productive at work. Transnet's approach to employee wellness is to embed ongoing and existing initiatives and interventions in these areas to impact positively on the workforce.

Absenteeism management

The increase in the number of days lost due to absenteeism and a parallel increase in salaries have been the main contributors to the R15,4 million direct increase in the absenteeism cost.

Overall the number of recorded absent days has started to stabilise, however, the monetary impact is always difficult to manage as it is linked to salary scales for different job levels. The focus on improving and standardising incapacity management processes will proactively facilitate access by employees to appropriate and relevant wellness interventions.

Absenteeism management scorecard  
R139,7 million direct absenteeism cost* Absenteeism rate (percentage days) 1,98%
12% versus 2009
As previous year

* Attributed to the increase in the number of days lost due to absenteeism and a parallel increase in salaries.

Absenteeism management programme

We said we will  
Draft new service requirements to ensure that incapacity management is integrated as a functional component in managing absenteeism in Transnet.
Appoint a new service provider for the Transnet Absenteeism and Incapacity Management Programme (TAIMP) to manage absenteeism and incapacity across the business.
Introduce an electronic management system to record absenteeism data as part of the outsourced TAIMP solution.
Initiate a project to streamline and standardise disability management and "injury on duty" processes.

We plan to
Implement TAIMP through the roll-out of training and re-training of line managers, awareness interventions, as well as embedding it into the well established communication plan of the Employee Assistance Programme (EAP) function.
Ensure full integration and optimal utilisation of SAP once the SAP HCM development has been finalised.
Refine and standardise documentation across all Operating divisions and integrate the new processes as part of TAIMP.

Lifestyle and HIV/Aids management programmes

The increase in disease management expenditure is realistic when compared to the price increases of medication and administrative costs during 2009/10. The targeted figures for 2010/11 are based on a 10% increase.

The Company recorded an increase of 7,4% in registrations for the Transmed HIV/Aids Programme compared to 2008/09. At the same time, there was a decrease of 6% recorded in the number of registrations for the Transnet Lifestyle Management Programme. The 6% decrease is mainly attributed to the fact that medically uninsured employees have joined medical aid schemes during the course of the year. This is noticeable in the increase of 7% in the number of employees who registered through the Transmed HIV/Aids Programme. The 7% increase in the number of enrolments in the Transmed Programme is an indication that participation in formal healthcare support structures, such as VCT access and 'wellness days', has begun to improve during the year.

Absenteeism management scorecard
R1,2 million spend on disease management 109 employees enrolled in the lifestyle management
1 289 employees registered on the Transmed HIV/Aids Programme A total of 1 398 employees enrolled in the lifestyle programmes
5% versus 2009
2011 target R1,22 million
4% versus 2009
9% versus 2009
8% versus 2009

HIV/Aids Management Programme

We said we will  
Incorporate HIV/Aids communication and awareness into the EAP communication plan.
Integrate voluntary counselling and testing (VCT) as one of the Wellness Day service delivery items.
Engage stakeholders, including trade unions in a process to establish more on-site facilities aimed at broadening accessibility to VCT and increase enrolment in the Transnet Disease Management Programme (TDMP).

We plan to
Place stronger focus on enrolment initiatives and ensure that employees are aware of the services provided by the TDMP.
Expand the use of HIV/Aids specific promotional material such as posters, invitations, newsletters and information articles.
Initiate a process whereby the VCT service provider records, monitors and reports the VCT uptake rate for each Operating division.