Johannesburg – Transnet SOC Limited (Transnet) on Monday announced that it has broken the back of the crippling strike by signing a three-year wage agreement with the majority union – the United National Transport Union (UNTU).
The other union South African Transport and Allied Workers Union, (SATAWU) is still holding out for a better wage hike offer.
Announcing the breakthrough, Transnet said: “The companys majority union UNTU reached a three-year wage agreement today, applicable for the period 1 April 2022 to 31 March 2025, in a process mediated by the Commission for Conciliation, Mediation and Arbitration (CCMA).
“This ends the current industrial action by UNTU members with immediate effect.
“The companys priority, in the immediate, is clearing any backlogs across the port and rail system prioritising urgent and time-sensitive cargo, and implementing recovery plans, working with industry and customers.”
Transnet said on 30 September 2022, UNTU had 24 992 members, accounting for 53,9% of bargaining unit employees at Transnet.
The agreement, which applies to all bargaining unit employees including those who are not members of UNTU, is effective from 1 April 2022, and will be implemented from 1 October 2022. It includes the following elements:
Year 1: a 6,0% increase in the basic wage for levels H to L, and 6,0% on the annual cost-to-company package for level G.
Year 2: a 5,5% increase in the basic wage for levels H to L, and 5,5% on the annual cost-to-company package for level G.
Year 3: a 6,0% increase in the basic wage for levels H to L, and 6,0% on the annual cost-to-company package for level G.
An increase in the medical aid subsidy, in line with the increases in the basic wage, over the duration of the agreement.
The increase on the medical subsidy for the 2022/23 financial year will be implemented from 1 October 2022.
An increase in the housing allowance commencing from the year 2023/24 and 2024/25.
The back-pay for the period 1 April to 30 September 2022 will be paid in two tranches three months back-pay on 15 November 2022, and three months’ back-pay on 16 January 2023.
Transnet said it appreciates the support that has been received from all stakeholders, including the CCMA, Government, customers, and industry broadly.
Transnet workers went on strike earlier this month from Friday, (7 October 2022), to press for wage increases of between 12% and 13%.
Estimates have put the industrial actions cost at between R1 billion and R8 billion a day.
