The United National Transport Union (Untu) is threatening legal action over attempts by railway operator Prasa to renege on implementing the one-year 5.5% wage deal it signed with unions in July.
Untu spokesperson Atenkosi Plaatjie said the union noted with “great dismay and contempt” the recent letter by Prasa acting CFO Brian Alexander, which he addressed to Untu general secretary Cobus van Vuuren.
“In the letter, Prasa states that the entity will potentially not be complying with the 2025/26 salary/wage collective agreement signed with recognised labour on July 24 2025,” she said.
“According to the signed legal agreement, Prasa is required to implement a 5.5% across-the-board increase on the total guaranteed package at the end of August 2025, with a lump sum back payment due at the end of the September payroll. Untu views this letter as a deliberate act of disrespect and disregard for collective bargaining.”
The parastatal incurred irregular expenditure of R3.8bn in 2022/23, earning a qualified audit opinion from the SA auditor-general for the period. From 2018/19 to 2021/22, the auditor-general issued a disclaimer on Prasa’s financial statements. A disclaimer signifies that the accounts cannot be relied on and often suggests the company is in a serious financial state.
Prasa received government subsidies from the transport department amounting to R7.2bn for operations and R12.3bn for capital expenditure in 2022/23.
The passenger rail operator generated revenue of R119m from fares, operating lease rental income of R620m, other income of R181m and interest received of R1.7bn.
“Untu will not accept Prasa’s refusal to honour a signed legal agreement. If Prasa fails to implement the salary/wage agreement in its full context, covering each and every element per the agreed timelines, Untu will enforce the agreement in its entirety through litigation, and we will do everything in our power to ensure that this collective agreement is enforced,” Plaatjie said.
“Prasa will also face litigation costs, wasting SA taxpayers’ money through fruitless and wasteful expenditure once again.”
Untu views the move by Prasa as a “deliberate attack on workers and an attempt to weaken the power of collective bargaining”.
The SA Transport and Allied Workers' Union and Prasa have been approached for comment, which will be added once received.
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