Artwell Dlamini
14 October 2008
Johannesburg — THE driver's licence demerit system is expected to bring with it costly adjustments to fleet operators, including listed companies, state-owned enterprises and public transport firms.
Avis Fleet Services MD Laurence Savage says there will be definite "costs coming from multiple places" owing to the demerit system, which will be rolled out nationally next year in terms of the Administrative Adjudication of Road Traffic Act.
The costs would be proportional to the size of the operators' fleets, says Savage, whose company leases vehicles to about 1500 fleet operators, which own 25-50 vehicles each.
Gavin Kelly, technical and operations manager of the Road Freight Association, which has about 640 transport firms as members, also expects high costs to accompany the demerit system.
Training drivers and stand-in drivers, and putting "structures" in place, among other things, carry some costs, Kelly says, and the estimated total costs are as yet unknown.
Peter Motileng, GM of transport at the Post Office, says the parastatal has developed a programme to make all its employees aware of the demerit system. Transport managers have gone through a series of road transport legislation workshops, because the new legislation saddles fleet operators with the responsibility to manage drivers.
Savage says companies may have to install an on-board computer, an expensive option, or keep a log book, a cheaper solution, in monitoring drivers. The law will also affect corporate car policies and practices.
"The act requires the licensed owner of a vehicle to be able to prove who was driving the vehicle at any point in time and, with regard to vehicle fleets, where more than one person drives a particular vehicle, the act demands a greater clarification on ownership -- and responsibility -- to ensure that demerit points are not unfairly accredited to individuals," says Savage. Such "greater clarification" means a change in company policies.
Robin Carr, director of the employment law unit at law firm Bowman Gilfillan, says operators need to develop clear policies and correct procedures for dealing with drivers who have either accumulated demerit points or had their licences suspended due to the demerit system.
"As the introduction of the point system approaches, I expect more companies to seek legal advice on a proper procedure to follow," says Carr.
Fleet operators should consider the effect of this legislation on labour contracts, says Savage. "In terms of the act, an employer would need an employee's written consent to obtain his or her demerit points record and, as such, labour contracts would need to be further reviewed, also with respect to drivers who have had their licences revoked and need transport in their line of work."
The Post Office, which runs a fleet of 1539 vehicles, began redrafting its policy two months ago, says Motileng. The risk inherent in the demerit system is that drivers could accumulate traffic fines to the extent that they end up with their licences suspended, he says.
Kelly says suspensions could worsen the shortage of truck drivers as it costs an operator about R8000 to retrain a truck driver whose licence is suspended.
An operator may also have points deducted. If an operator fails to ensure that a vehicle is roadworthy, the operator faces a fine of up to R1250 and gives up four demerit points. Repeated offences may lead to suspension of a licence to operate a fleet.
Apart from the prospect of rising costs to operators, Savage believes the demerit system promises to bring benefits to fleet operators in the long run if it is managed correctly. The biggest gain would arise from heightened driver responsibility and a reduction in vehicle accidents.
In terms of the point system, drivers will accumulate points for each traffic offence. Every point exceeding 12 will result in a three-month suspension of the driver's licence, says Savage.
A licence will be revoked once it has been suspended a third time, he says. "In order to reward good driving, a point will be reduced every three months if no infringements occur within that period."
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