Numsa’s 17-day strike at Gautrain operator Bombela Operating Company (BOC) has come to an end after the parties signed a one-year 6.8% wage agreement, with striking workers expected back on duty on Friday.
The pay deal is above the inflation rate, which eased to 5.1% in June from the 5.2% recorded in both April and May.
BOC is a private company contracted by Bombela Concession Company (BCC) to operate and maintain the Gautrain systems.
“BOC is pleased to have reached an agreement on the wage negotiations dispute with National Union of Metalworkers of SA (Numsa). The agreement and acceptance of the 6.8% wage offer was signed by the two parties on July 24. This brings an end to the 17-day protected strike that Numsa-affiliated employees embarked on,” BOC corporate communications manager Lebogang Tsotetsi said.
“We welcome this recent development and that an equitable resolution was reached, indicating efforts by both BOC and Numsa to engage with employees’ interests ... As BOC, we look forward to [maintaining] and continuously elevating the standards of the Gautrain services to passengers, as well as meeting our contractual obligations to our clients. BOC would like to thank all employees and partners who have positively contributed to ensuring operations runs seamlessly.”
Responding to questions from Business Day, including the cost of the increase to the company, Tsotetsi said: “These are annual increases budgeted for by BOC.”
Numsa said it welcomed the agreement, which is valid from July 1 to June 30 2025.
As part of the deal the night work transport subsidy will increase from R105 to R112; the night shift allowance will rise from R35 to R37; the housing subsidy will increase from R1,210 to R1,300; and the performance bonus will be pegged at 6.8%.
“The signing of the agreement means that the strike is over and all striking employees are expected back at work by Friday …. Numsa wishes to thank its members for their courage and their determination,” Numsa general secretary Irvin Jim said.
“They were loyal to their demands and they showed gallant resistance against an onslaught from an inflexible employer. Their strike pushed the employer from the initial offer of 5.3% to 6.8%. This is working-class power ... We [will] continue to ensure that workers receive above inflation increases to mitigate against the high cost of living.”
Numsa members at Gautrain downed tools more than two weeks ago in support of their initial demands for a 13% wage increase, which they later revised down to 9%, citing a rising cost of living.
The union argued its members’ demands were not unreasonable as the lowest-paid worker earned R8,000 a month “without any benefits”. Numsa had also demanded that BOC cover 60% of employees’ medical aid costs and increase the housing allowance to R2,000 a month.
The industrial action prompted the CCMA to invoke a section 150 intervention to try to assist the parties in reaching an agreement.
The Gautrain plays a pivotal role in the economy of Gauteng, which contributes nearly 40% to GDP. It connects Johannesburg to Pretoria, and both cities to OR Tambo International Airport, one of Africa’s busiest and largest airports.
Update: July 25 2024
This story contains additional comment from Numsa.
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