The National Union of Metalworkers of SA (Numsa) has signed a two-year deal for increases of 5% and 6.5% with employers in the bus passenger sector, following months of talks and threats to embark on a wage strike recently.
The wage talks between labour and employer bodies, including the SA Bus Employers Association (Sabea) and the Commuters Bus Employers Organisation (Cobeo), got under way in February at the SA Road Passenger Bargaining Council (Sarpbac). Its members include Putco, Bojanala Bus, Algoa Bus Company and Great North Transport.
Numsa, which represents more than 400,000 workers, participated in the first round of wage talks on February 5-9, by initially demanding a one-year, 15% increase, which it revised to 10% before settling at 8%. Employers were offering 4%.
Stats SA reported recently that consumer prices eased for the first time in 2024 to 5.3% in March. The Reserve Bank and some economists expect inflation to average about 5% for the year, down from 6% in 2023.
“We have secured an across-the-board increase of 5% on the rate of pay, which will be implemented from April 1 2024 until March 31 2025. In the second year of the agreement, an increase of 6.5% on the base rate of pay will be implemented from April 1 2025 until March 31 2026,” said Numsa general secretary Irvin Jim.
“From April 1 2024 the minimum hourly rate will increase to R48.15 and from April 1 2025 it will increase to R51.28 until March 2026.”
This agreement is a reminder of why trade unions play an important role in improving the conditions for workers and their families, said Jim.
“Besides securing across-the-board wage increases, we also finally secured the burning demand for bosses to contribute to primary healthcare cover for workers. Negotiating better conditions and wages for workers is at the heart of the work that Numsa does.”
Among other benefits, the travel allowance will increase to “R786.48 effective from April 1 2024. It will increase to R837.60 in the second year of the agreement on April 1 2025 until March 31 2026”.
“The dual driver allowance has been increased to R476.36 for the first year effective April 1 2024 and in the second year it will increase to R507.32 on April 1 2025 until March 31 2026,” Jim said.
“This year the talks were very tough because of the poor state of the economy. However, we still managed to secure increases, as well as to make a breakthrough on the burning demand for medical insurance cover. Numsa officials must be commended for a job well done.”
Sarpbac general secretary Gary Wilson said: “Just to clarify, the wage deal is the result of extensive wage negotiations that took place between the two unions, namely Numsa and Satawu (SA Transport and Allied Workers Union) and the employer organisations, Cobeo and Sabea.
"This year was particularly difficult because of the weak economy and the struggles within the bus sector. The industry has never recovered from Covid-19 and our industry had one of the highest job losses to the extent that we have shrunk almost 50%. So we are pleased that an agreement could be reached without any industrial action, [and that] the two-year agreement allows the industry to stabilise.”
In 2022, parties signed a 6% wage agreement on the eve of the Easter holidays as Numsa members were preparing to stop work. The deal, which saw the industry’s minimum wage rise to R42.85 an hour from R40.43, expired in March 2023, as did a one-year, 7% pay agreement after lengthy negotiations, in April 2023.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.