The rest of the company can be sold as a company composed of the city's own requirements in terms of BEE scoring. The Democratic Alliance will lobby and strongly recommend that the entity be sold in its entirety to a single company with a 30% driver share option that can be funded from their pension contributions if they so wish to do. Currently the Metro Bus service operates on a per kilometer fee of R35 while the National Department of Transport norm is a fee of between R22 and R25.
Metro bus driver pay drivers#
Metro Bus drivers earn around R14 000 a month compare to the R8 000 per month of drivers of the city's own BRT project. More than 60% of the Metro Bus operational budget gets spent on salaries compared to the 30% of a private company such as PUTCO. This additional cost would bring about a phenomenal increase in the operational budgets. An inflated salary bill can be expected as this will now have to include 4 x managing directors, 4 x financial officers, 4 x HR managers, 4 operational managers and 4 times the number of support staff. They will operate on existing Metro Bus routes to run a company on a fee per kilometer subsidy. In terms of this model the four companies (3 x bus and a maintenance company) will be owned by the bus drivers, maintenance staff, private stakeholders (including taxi operators). The depots will not all be running an equal chunk of the existing service and it will be determined by the routes that are currently operational and linked to that depot. Not all routes are equally sustainable therefore we currently do have cross-subidisation for longer less viable routes. In the ideal world this would be an ideal concept, but unfortunately, the economies of scale just do not permit and in the long run this doesn't make the companies economically viable. The companies would be subject to a service level agreement with penalty clauses to protect the COJ failure to deliver on their agreed mandates. The city will subsidize the entity by paying a fee per kilometer subsidy to the companies.
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The fourth company will assume all responsibility for the maintenance of the three fleets.
The unbundling of Metro Bus into four companies, will be linked to the three existing depots namely, Milpark, Roodepoort and Village Deep. The mayoral committee resolved in its meeting on 13 October 2011 that Option 2, that speaks to the unbundling of the entity, is the best future option for Metro Bus. Nico de Jager says 60% of operational budget spent on salaries, compared to 30% for PUTCOĪ Future Options Study on the future of Metro Bus commissioned by the City of Johannesburg came up with a number of proposals early 2011.
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