THE IMPLICATIONS OF RESTRUCTURING AND PRIVATISATION OF STATE-OWNED ENTERPRISES (SOES) ON EMPLOYEES WITH SPECIFIC REFERENCE TO SPOORNET IN SOUTH AFRICA

The main objective of this study was to investigate the implications of restructuring and privatization of State-Owned Enterprises on employees at Spoornet in South Africa. This study utilized document analysis in the acquisition of information and data. Contemporary restructuring and privatization reforms are significant in ameliorating efficiency, effectiveness, greater competitiveness, profitability, financial sustainability and productivity of State-Owned Enterprises (SOE)s in South Africa. The findings indicated that implementation of restructuring and privatisation at Spoornet propelled the application of Restructuring Efficiency Measures (REM) which precipitated massive employee downsizing during the period of 1996 to 2008. Although literature has been written about privatization and restructuring of SOEs, little is known about its implication on employees of public railways. This research has filled this gap by evaluating and analyzing data on employee downsizing at Spoornet, which is the State-Owned Enterprise responsible for railway transport. The findings show that trade unions resisted the restructuring and privatization of Spoornet and proposed an alternative policy proposal called the ‘reconstruction of Spoornet’ policy document, which trade unions produced as an alternative proposal. The study revealed that despite trade unions resistance to privatization and restructuring of Spoornet, the State- Owned- Enterprise experienced major job losses between 1996 and 2008.