COSATU calls on Prasa to link its fare increases to inflation

The Congress of South African Trade Unions (COSATU) notes the announcement by the Passenger Rail Agency of South Africa (Prasa) to increase its fares from 1 August.

Whilst COSATU welcomes the huge improvements Prasa has made to its infrastructure as well as the rollout of the new trains, the Federation believes the proposed ticket price hike is high and will be burdensome to commuters who are already battling to cope with the high cost of living. Food inflation alone is multiples higher than composite inflation, not to mention the price of utilities such as electricity which are necessities. Just yesterday we saw the community of Tembisa, in Ekurhuleni take to the street to protest the implementation of a compulsory electricity surcharge.

Instead of levying the proposed fare increase, COSATU is of the opinion that Prasa should utilise this period to reposition itself as the mass mover of the working class. This process of renewal should include a ticket pricing system that encourages commuters to return to the rail system as their preferred mode of transport. To achieve this, the Federation urges Prasa to limit the fare increase to the prevailing inflation rate.

The proposed price hike will likely lead commuters to cling to their past perceptions of Prasa and not afford it the opportunity to demonstrate that it has shed its culture of mismanagement, which led to it providing an unreliable service. There is no doubt that commuters felt the void left by Prasa in the public transport system deeply, however, they were forced to seek and eventually found alternatives. To lure them back to its rails, Prasa should steer clear of implementing a price increase that will change the cost structure of rail transport fees. Whilst mindful of the significant investment in infrastructure, the rail agency should aim to recoup costs by swelling the number of commuters rather than relying solely on the increased fare contribution.  

Discussions are presently underway at Nedlac to finalise the subsidisation principles for public transport. These deliberations must be finalised, before any increase above inflation is considered. There is a need for a coherent rational policy that foregrounds commuters’ needs, rebuilds and restores trust. It is essential that this is concluded before above inflation increases can be considered.

COSATU remains available to expedite a coherent policy and implementation strategy related to public transport and Prasa in particular.

Issued by COSATUTony Ehrenreich(COSATU Deputy Parliamentary Coordinator)
Mobile: 082 773 3194Email: tony@cosatu.org.za
Or Zanele Sabela (COSATU National Spokesperson)
Mobile: 079 287 5788 / 077 600 6639

Email: zaneles@cosatu.org.za 

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