‘Railway deal will not affect URC staff’

Dec 08, 2005

THE signing of an agreement between Uganda and Kenya railways and Rift Valley Railways Consortium of South Africa will not affect Uganda Railways Corporation’s (URC) employees terminal and pension benefits, a Privatisation Unit official has said.

By Mary Karugaba

THE signing of an agreement between Uganda and Kenya railways and Rift Valley Railways Consortium of South Africa will not affect Uganda Railways Corporation’s (URC) employees terminal and pension benefits, a Privatisation Unit official has said.

Simon Peter Engorait, the team leader of URC’s concession, said on Wednesday, “The employees are worried about who will pay them once the agreement is signed. But this is not the final deal. After the signing, it will take four months for the Government to hand over to the new concessionaire.”

However, on Wednesday, court ordered a halt to the signing until the two parties agree that the terminal benefits and pension of the unionised workers would be paid.

Last year, the two East African governments decided to privatise their railways through a joint concession to enhance efficiency of the railway transport sector.

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