OVERVIEW OF THE BUS COMMUTER AND COACH SERVICES SUB-SECTOR CODE FOR B-BBEE

Scope of the Sub-Sector Code

The Bus Sector Broad-Based Black Economic Empowerment (B-BBEE) sub-sector code applies to all road passenger transport services rendered by means of minibuses and buses (as defined in the National Land Transport Transition Act, 2000, and its subsequent amendments). The Bus B-BBEE Sub-Sector Code excludes road passenger transport services rendered by means of minibuses (as defined in the National Land Transport Transition Act, 2000, and its subsequent amendments), as such will be covered by the Minibus Taxi Industry B-BBEE Charter.

The scope of this bus sector B-BBEE sub-sector code extends to all sub-sectors of the industry and includes the following:

Commuter bus services
Long-distance bus services
Tour and bus services
Intercity bus services
School/learner bus services
Commercial contract bus services
Special hire or private hire bus services
Subsidised and non-subsidised bus services
Scheduled and unscheduled bus services

The Bus Sector B-BBEE Sub-Sector Code covers the following entities involved in rendering passenger bus services:

1. Privately owned bus operations
2. Listed bus operations
3. State-owned bus operations
4. Municipal bus services or bus operations owned by and/or metropolitan authorities
5. Parastatals and bus operations owned by provincial authorities

The Bus Sector B-BBEE Sub-Sector Code makes provision for Exempted Micro Enterprises (EMEs) and will cover Qualifying Small Enterprises (QSEs) as well as medium- and big bus operators. The Bus Sector B-BBEE Sub-Sector Code also cross-references to the Codes of Good Practice on BEE in terms of key measurement principles and definitions as amended. This Sub-Sector Code shall remain in effect until amended, substituted and repealed under Section 9 of the B-BBEE Act, or with the parties to this Sub-Sector Code process agreeing to do so. The Transport Charter Council will review this sub-sector code following the end of the 5-year period after its gazetting, and it will be reviewed on an annual basis for monitoring purposes.

ll stakeholders commit to the following:

1. Review the Bus Sector B-BBEE sub-sector code following the end of the fifth year after the commencement date; and
2. Conduct annual reviews to monitor the implementation of B-BBEE throughout the sector.

Challenges facing the Bus Commuter and Coach Services Industry

1. Restructuring and transforming the current public transport system into a fully integrated, multi-modal network of public transport aimed at meeting the economic and social development needs of South Africa;
2. Making bus transport more accessible and affordable to users of public transport;
3. Improving the quality, safety, punctuality and reliability of bus services and providing the relevant information to users of public transport;
4. Recapitalisation of operator vehicles outside the contract system; and
5. Improving the infrastructure supporting bus services and public transport, e.g., dedicated public transport lanes, bus stops, transfer stations, ticketing systems, passenger information systems, etc.

The role of the Bus Commuter and Coach Services Sub-Sector B-BBEE Code

1. The Bus Sector B-BBEE Sub-Sector Code has an important role to play in transforming the bus sector to support the realisation of the below vision: Ensure more equitable participation of all groups in the ownership and control of enterprises in the bus sector.
2. Promote equal opportunity and fair treatment in employment in the sector through the elimination of unfair discrimination;
3. Promote the development of skills of the workforce and the increase in the levels of investments in education and training to meet the changing demands of the future public transport system in South Africa;
4. Enhance the restructuring of procurement policies and practices in the sector to ensure that B-BBEE suppliers and providers will participate meaningfully in the procurement spend of the sector;
5. Promote the investment in and the establishment and support of enterprise development beneficiaries; and
6. Promote the contributions to socio-economic development initiatives.

A VISION TO DEVELOP A WORLD-CLASS BUS COMMUTER AND COACH SERVICES INDUSTRY

The vision of the bus sector in South Africa is to transform the current system of public transport into a world-class public transport system where different modes are fully integrated and coordinated in a network of public transport services aimed at meeting all the passenger transport needs of the country.

The signatories to this agreement believe that every company in the bus and coach sector should voluntarily commit to this Sub-Sector Code in support of constitutional, legislative, social and economic imperatives to secure a prosperous future for all our citizens and the well-being of our customers. In agreeing to commit to this balanced scorecard charter, all signatories commit themselves to be monitored, verified and rated by an independent B-BBEE rating company/verification agency that is accredited by the appropriate accreditation agency on behalf of the Department of Trade and Industry (DTI). The signatories further commit to communicate this broad-based Sub-Sector Code to every company in our industry’s value chain to ensure maximum participation by all stakeholders.

Undertaking from bus and coach operators to achieve this vision.

Both the operator groups above are committed to developing world-class bus and coach businesses in South Africa. This is possible through committed training and development, consistent investments, an acceptable return on such investments, and the offering of superior services to our customers. Operators are committed to safe operations and will continuously strive to improve safety standards – both in technical design and operations. The industry will also achieve significant B-BBEE participation in ownership, management and employment amongst all role players in the industry. A transformed industry will also embrace the development of SMME operators as well as other SMME role players. This will be done through retaining existing jobs where feasible, whilst striving to expand the scope of bus and coach operations in South Africa.

overnment undertakings to achieve this vision

National and local governments must demonstrate their commitment to the bus industry by doing the following:

1. Actively supporting the bus industry as a core component of the transport industry in South Africa;
2. Actively supporting the intercity and tour charter coach and tour bus industry as a core component of the national, regional and international tourism industry;
3. Continuously clarifying the public transport policy direction in order to provide stability and direction to the industry;
4. Actively engaging in discussions with the bus industry in view of the expansion of desperately needed services;
5. Resolve legislative and fiscal restrictions that have a negative impact on the further development of the industry as well as policy implementation;
6. To engage in discussions regarding issues of learner transport services;
7. Assist B-BBEE companies in accessing funds for training and skills development through the Transport Sector Education and Training Authority (TETA);
8. Assist industry and B-BBEE companies in training and development initiatives;
9. To apply this Bus Sector B-BBEE Sub-Sector Code in the tender and negotiated contract processes;
10. Enforce and monitor compliance with existing legislation that may impact B-BBEE, such as the Employment Equity, Skills Development and Competition Acts; and
11. Stakeholders should use the annual B-BBEE report published by the Transport Sector B-BBEE Council to annually review progress on transformation.

Labour’s undertaking to achieve this vision

1. Encourage employers to first look towards their own employees when considering options for achieving black equity participation;
2. Ensure that workers are empowered through skills development and training and create opportunities to deploy them into management positions;
3. Mobilise members to ensure compliance with existing legislation, e.g., the BEE, Employment Equity, Skills Development, Labour Relations and Basic Conditions of Employment Acts;
4. Encourage members to monitor the performance of their employers in implementing the Growth and Development Summit (GDS) agreement on promoting local content and/or procurement and supporting the Proudly South African campaign;
5. To work constructively with employers in the industry to grow and develop the bus industry into a world-class industry; and
6. Monitor the impact of tendering/negotiated contracts and procurement/outsourcing on job retention and creation.

TETA’s undertaking to achieve this vision

1. To lead in facilitating the accurate determination of the real training needs in the bus industry and setting appropriate training priorities in the bus chamber;
2. Assist stakeholders with the analysis of people in a particular skills set (or job category) broken down by race and gender;
3. Continuously analyse and update statistics about the future demand and supply of critical skill sets;
4. Continuously conduct an analysis of the quantity, quality and nature of training that companies are doing;
5. Commit to this B-BBEE Strategy and strive to achieve the targets set (where applicable) with specific reference to service providers;
6. Align its mission and vision with the imperatives of B-BBEE and assist with the implementation and monitoring of the B-BBEE strategy; and
7. The signatories of this sub-sector code are of the view that the sector should endeavour to facilitate the realisation of these commitments by monitoring contributions to B-BBEE. The evaluation of these contributions should be conducted through an evaluation matrix provided in Appendix B (future article).

The next article will summarise the guiding principles of various BEE elements.