Putco converts contract workers to permanent roles after union pressure
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Putco, a bus company operating in Gauteng, Mpumalanga, and Limpopo provinces of South Africa, agreed to make 349 contract workers permanent employees.
The National Union of Metalworkers of South Africa (Numsa) intervened at the South African Road Passenger Bargaining Council to advocate for the workers’ rights. These newly permanent employees will now receive benefits including pension funds, healthcare, and legal protections against unfair dismissal or workplace injury.
Numsa argued that Putco had previously used temporary contracts to exploit unemployment, which currently stands at over 33.6% in South Africa, and keep labor costs low. The union stated that some workers had been on temporary contracts for more than three years, violating labor laws that restrict long-term use of fixed-term contracts without justification. Numsa intends to continue advocating for the remaining 77 affected employees to also gain permanent status.
Putco spokesperson Lindokuhle Xulu maintained that the decision to make the workers permanent was independent of Numsa’s intervention. Xulu explained that the company secured seven-year contracts in 2023, and a recent court ruling maintained the current level of service, creating stability that allowed Putco to offer permanent positions. Xulu also noted that contract workers already earned comparable salaries, and the change primarily involves the company contributing to employee benefits.
