Pikitup’s R85m monthly bill on rented vehicles
Pikitup spends R85 million monthly renting vehicles while 52 vehicles face scrapping and 39 await workshop repairs.
Pikitup, a waste management entity in Johannesburg, spends R85 million monthly to rent vehicles for its operations. Currently, 52 of its vehicles are slated for scrapping, while 39 others are in workshops awaiting repairs, leaving no operational vehicles. This situation arose due to ongoing labour disputes involving casual workers hired through service providers, who are demanding permanent employment.
The disruptions began in July and November last year, affecting waste collection at various depots, including Waterval and Randburg. As a result, Pikitup had to hire vehicles at a significant cost, impacting five depots severely, leading to the non-service of 130 routes and delayed refuse collection in an average of 195 suburbs.
Despite efforts to engage stakeholders and secure support from the Joburg Metro Police Department, the issue remains unresolved. Pikitup has a 56% vacancy rate for fleet vehicles, and 52 are deemed uneconomical to repair, with an estimated repair cost of R5.1 million. The entity has also accumulated a R1.5 billion debt to 93 service providers, including ongoing payments for up to a year, despite acknowledging the challenges faced by service providers.
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