Transnet and UNTU set to resume wage negotiations in effort to avert workers' strike

Transnet and the United National Transport Union (UNTU) are gearing up for critical negotiations this week in an effort to stave off a potentially debilitating workers' strike.

The discussions come on the heels of an unresolved wage dispute that has led UNTU to indicate that workers could legally embark on industrial action.

Last month, negotiations between the two parties faltered, prompting the Commission for Conciliation, Mediation and Arbitration (CCMA) to issue a certificate of non-resolution.

UNTU general secretary, Cobus van Vuuren, on Friday said that the CCMA convened an urgent Section 150 facilitated session on Thursday, 08 May, to address the ongoing salary and wage dispute between UNTU and Transnet at the Transnet Bargaining Council (TBC).

“Recognising the strategic economic importance of Transnet and the potentially devastating impact of industrial action, the CCMA, in its role as South Africa’s primary dispute-resolution body, called on both parties to engage in a facilitated process with the aim of finding a resolution to the current impasse,” he said.

“We tabled a range of wage/salary proposals during the session, which we believe warrant consultation with our members to obtain a clear mandate. Transnet management, in turn, committed to referring these proposals to their own mandators.”

Van Vuuren said that the CCMA has scheduled a continuation of the section 150 process set down over two days this week, 14 May, and 15 May.

“While we are unable to disclose specific details of the proposals due to the confidential nature of the process, UNTU is confident that what is currently on the table reflects the best interests of our members, with a strong emphasis on securing jobs and ensuring wage increases are aligned with the economic realities our members face,” he said.

“The balloting process remains active and will continue as scheduled. The process has gained significant momentum, with mobilisation efforts intensifying across all regions to ensure that we are fully prepared, should it become necessary to take the fight to the streets.”

Transnet said that it participated in a facilitated conciliation through the CCMA to resolve the current wage dispute with UNTU.

“Transnet welcomes the CCMA’s involvement in facilitating the conciliation and is committed to engaging constructively in the conciliation process. We believe that it offers a constructive and collaborative path forward. Transnet is of the firm view that the most effective path to resolving this dispute lies in continued dialogue. Engagements are set to continue in the next few days.”

Transnet added that their final wage offer, which includes a 17.5% cumulative wage increase over three years, was well above inflation and reflected its commitment to fair compensation amid challenging financial circumstances.

“Transnet is navigating the very tough economic climate with a focus on preserving jobs and has, therefore, committed to the recognised labour unions that it will work with them to avoid forced retrenchments, and will explore opportunities for early retirement, redeployment, reskilling, and restructuring as alternatives.

The company will comply with all provisions of its existing Recognition Agreement signed with SATAWU and UNTU and prevailing legislation, especially the Labour Relations Act, when considering any restructuring initiatives. We will provide further details as the conciliation process progresses.”

Malcolm Hartwell, Norton Rose Fulbright director and master mariner, said it was critical that the wage impasse between Transnet and UNTU be resolved.

Hartwell added that Transnet’s privatisation initiative appeared to be gathering momentum, and Transnet did not need protracted negotiations or a strike to affect that process.

“Although Transnet and the industry would have preferred UNTU to accept the initial wage offer and avoid lengthy delays in finalising the long-term wage agreement, this wage agreement does extend over a number of years, and accordingly, it is not surprising that it was not resolved immediately,” Hartwell said.

“We are sure that Transnet and the private sector want this resolved as soon as possible, and hopefully next week’s talks at the CCMA will resolve this.”

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