Transnet and unions agree on pay raise, avoid strikes

Transnet has concluded a three-year wage agreement with its recognised unions, SATAWU and UNTU, securing a 6% annual salary increase for workers over the next three years.

According to the state-owned freight and rail company, the deal came after the "conclusion of a conciliation process led by the Commission for Conciliation, Mediation, and Arbitration (CCMA)".

Last month, IOL reported that the government approved a R51 billion guarantee facility for Transnet to support its sustainability and long-term growth.

The company is also set to receive additional government support to help the struggling state-owned ports and freight railway operator clear its outstanding debts.

The deal also includes increases to key benefits such as pension contributions, medical aid, housing allowances, and the 13th cheque.

In a statement issued to the media on Thursday, Transnet said the agreement will allow the company to to focus on its immediate strategic priorities of improving operational and financial performance.

"The above-inflation wage agreement represents a 18% wage increment over the three-year period. It includes increases to basic salary and related components, viz. 13th cheque, pension fund contribution, medical aid subsidy and housing allowance," Transnet said.

"The finalisation of the three-year wage agreement provides labour stability and will enable the company to focus on its immediate strategic priorities of improving operational and financial performance, while positioning the organisation for future growth, thereby ensuring job security and economic growth".

United National Transport Union (UNTU)  said the newly signed agreement they had previously signed with Transnet, adding the agreement also has a "firm non-retrenchment clause".

"As the majority union representing the voices of more than 26,000 employees at Transnet, UNTU confirms that the signed agreement supersedes the previous wage settlement signed between Transnet and the majority union".

"Importantly the new agreement places a strong emphasis on job security and includes a firm non-retrenchment clause which was one of the key demands tabled by UNTU in this process"

Get your news on the go, click here to join the IOL News WhatsApp channel. 

mthobisi.nozulela@iol.co.za

IOL Business