The minibus taxi industry is today the most critical pillar of the South African transport sector. The industry is an integral part of the country’s economy. Not only is it the most used and available mode of transport, but it is also the most accessible and affordable for most of the South African population who rely on it for their daily commute.
Without the taxi industry transporting workers, students, job seekers, etc, our economy would grind to a halt. A few times when the industry protested, the economic cost and its impact were massive.
A recent National Household Travel Survey (NHTS) by Statistics SA (report) found that an estimated 10,7-million or 80% of passenger trips daily are in minibus taxis. Evidently, the minibus taxi industry is key to the functioning of the economy. It is curious then that we do not see the taxi industry workforce enjoying basic and normal employment benefits, including the state-managed Unemployment Insurance Fund.
Traveling in minibus taxis in SA carries risks for both drivers and passengers. While other workers, who use the very taxis, are generally looked after through Mmedical aid, UIF, paid leave, retirement funding, group life and risk cover, workers in the taxi space enjoy none of these benefits. Workers in the taxi sector are also family breadwinners, parents and people who aspire to a better life. It is beyond question that they deserve some measure of protection as key workers in our economy.
The absence of these benefits is in part, a reason for the notorious reputation of taxi driver delinquency on our roads. Drivers are forced to work harder to generate extra cash so that they can finance some of life’s necessities, including covering gaps occasioned by the absence of employee benefits. Giving them access to these benefits might be part of the solution to the notoriety associated with the driver behaviour on the roads.
According to a study conducted by the National Institute of Occupational Health and Safety that was published in the Journal of Occupational and Environmental Medicine, taxi drivers faced a greater risk of assault or homicide than police officers between 2003 and 2013. The necessity of carrying a substantial amount of cash makes drivers a target for robberies and assaults.
In addition, being on the road for long hours increases the risk that the drivers may, at best, be injured in an accident and at worst, be hospitalised or lose their lives.
There are several reasons for the absence of employment benefits in the sector, mainly the informality of the employment relationships. The gap that would normally be covered by the formal financial services sector is also left unaddressed. More than anything, this is caused by the absence of innovation and strongly negative, dated perceptions and ignorance of the sector that results in its workers not having suitable financial protections.
In an ideal world, workers in the taxi sector should enjoy benefits that ensure that the financial well-being of their families is secured, just as other workers have. Being a sector that is organised, large and economically active, its workers should at the very least have access to benefits such as pensions or provident funds, funeral insurance, medical aid insurance, etc.
It is now possible for the workers in the transport sector to access these products and services. As a company, we have specifically learnt the structure, norms and practices of the sector and are able to provide the necessary financial products.
Family Tree Advisory serves a market that’s often underserved, ignored and deserving of services specially curated to meet the needs of those employed by the industry in a context that sets their conditions at the core.
Taxi drivers and other workers in the sector are some of the most hard-working people in our society. When taxi drivers’ lives are protected, passengers are protected and therefore, economic activity can be optimised.
• Lengane is CEO and founder of Family Tree Advisory
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