Transnet tabled a revised three-year wage offer to its recognised labour unions, United National Transport Union and South African Transport and Allied Workers’ Union, on Thursday. This follows a prior offer presented on Wednesday as the current wage agreement, set to expire on March 31, 2025, nears its end.

The old proposal offered a three-year increase tied to inflation: Year 1 at CPI + 1% (4.5%), Year 2 at CPI + 0.5% (5%), and Year 3 at CPI + 0.5% (5%), totaling a 14.5% cumulative rise.

The revised offer shifts to a fixed structure: 5.5% in Year 1, 5.5% in Year 2, and 5% in Year 3, amounting to a 16% increase over the period. Both offers include adjustments to basic salaries, 13th cheques, pension contributions, medical aid subsidies, and housing allowances.

Transnet said the latest proposal was “reasonable and fair,” citing its current financial and operational challenges.

In 2023/24, Transnet reported a net loss of R7.3 billion after a R5.1bn loss in 2022/23, largely due to increased finance costs. Additional debt and higher interest rates pushed finance costs to R14.3bn in 2023/24. The series of volume losses since 2018 has meant that Transnet has shifted funds from capital expenditure to debt servicing. While this prevented default, the shift has come at the expense of maintaining and expanding critical infrastructure.

The company says the above-inflation offer considers cost of living, employee wellbeing, job security, and long-term sustainability.

"Critically, a three-year wage agreement provides a more stable and predictable environment for all parties involved," it said on Wednesday.

Negotiations remain ongoing, with no settlement reached yet. Transnet says it is committed to constructive dialogue and concluding talks amicably to focus on strategic priorities, including operational and financial recovery. The company underscores that a swift agreement will support its goals of improving performance and ensuring job security for current and future employees, while serving customers and the broader economy.

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Transnet proposes revised wage offer amid financial challenges