The two largest unions at Prasa have declared a dispute at the CCMA and are threatening industrial action after the rail operator “refused” to formally respond to demands for wage increases five times the rate of inflation.
A strike could leave millions of commuters reliant on trains for transportation in limbo and stall the recovery programme of the past year that saw the Passenger Rail Agency of SA (Prasa) reopening several rail lines in Gauteng and Western Cape that were subjected to severe damage, theft and vandalism during the Covid-19 lockdown .
The SA Transport and Allied Workers Union (Satawu) and the United National Transport Union (Untu) on Monday both declared a dispute with the CCMA after talks — which began early this year — stalled for the third time at Prasa’s Umjantshi House headquarters in Johannesburg.
Satawu and Untu’s consolidated wage demands include a 15% across-the-board wage increase for 2025/26. Inflation is hovering at about 3%. The unions are also demanding a R3,000 housing subsidy, R50 per hour standby allowance, R10 per hour night shift allowance, a moratorium on retrenchments and a medical aid subsidy with the employer contributing 70%, among others.
Untu spokesperson Atenkosi Plaatjie said Prasa management had yet to respond to labour’s demands, to the chagrin of both unions. “This marks the third attempt by labour to secure an official response to the demands mandated by our members. Yet, Prasa management has responded with nothing but arrogance and blatant disregard for the collective bargaining process.
“The first time we met, they said they were not ready. The second time, they said they are waiting for the tabling of the budget speech. On Monday, they said they are waiting for the board to approve their offer,” Plaatjie said, bemoaning the “wasteful expenditure” incurred as union leaders get flown in and accommodate, “yet there’s no offer on the table”.
Satawu spokesperson Amanda Tshemese said: “We started these negotiations early this year but as always, the management kept coming unprepared with nothing to offer at all. The management has made it clear that they do not have enough resources to meet labour halfway.”
Tshemese said Prasa management was claiming to be bankrupt. “We are of the view that this is a lie. The entity has money. They also received billions of rand in this year’s financial year. We want to make it clear we are left with no choice but to go on strike [as] it is clear that the employer prefers to negotiate on the streets,” she said.
Prasa spent R3.8bn on irregular expenditure in 2022/23, earning itself a qualified audit opinion during the period under review.
From 2018/19 to 2021/2022 the auditor-general issued a disclaimer on the parastatal’s financial statements. A disclaimer signifies the company’s accounts cannot be relied on and often suggests the company is in a serious financial state.
Prasa received government subsidies from the department of transport amounting to R7.2bn for operations and R12.3bn for capital expenditure during 2022/23. In addition, the rail operator generated revenue of R119m in the form of fare revenue, operating lease rental income of R620mn, other income of R181m and interest received of R1.7bn.
Transport minister Barbara Creecy told the national bargaining conference of the National Union of Metalworkers of SA in Johannesburg on Monday the work of returning Prasa to its former glory continued.
“Prasa has embarked on an extensive corridor recovery programme, focused on re-signalling lines, refurbishing stations and securing key depots. This has led to 34 of 40 commuter service lines re-entering into operation. Prasa has set a target of reaching 600-million passenger trips per annum, in line with pre-pandemic figures, with 64-million trips predicted by the end of 2024/25,” Creecy said.
“An increase in the number of trips can only be achieved by successfully resignalling corridors, thus increasing the frequency of services. The recovery of passenger rail falls within government’s broader objective of revitalising the rail sector. Commuter rail is a safer and cheaper alternative for the working class.”
Plaatjie said: “Prasa’s ongoing recovery has only been possible due to the dedication and hard work of its employees yet, instead of recognising their contribution, management is choosing to dismiss their salary/wage demands.”
That, she said, prompted the two unions to declare a dispute at the CCMA. “If management refuses to engage in negotiations at the table, then labour will exercise its legal right to negotiate on the streets. If this is the only language Prasa management understands, then that is the language we will speak.”
Prasa has been approached for comment, which will be added once received.
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