Transnet management and leaders of the United National Transport Union (Untu) are set to meet at the Commission for Conciliation, Mediation and Arbitration (CCMA) on Monday following Untu’s refusal to accept a multiyear wage deal that another union accepted.
Untu and Transnet failed to reach agreement during an urgent bilateral meeting on Monday, Untu spokesperson Atenkosi Plaatjie said.
Untu says it has 26,018 members at Transnet and 6,930 at Prasa.
“The purpose of the meeting was to explore possible solutions to break the deadlock in the 2025/26 salary and wage negotiations,” the union said in a statement
Untu recently gave cash-strapped ports and rail operator a 48-hour notice to “stop the unilateral implementation” of a three-year wage agreement that would see SA Transport and Allied Workers Union (Satawu) members receive increases of 6% in the first and second years and 5.5% in the final year of the agreement.
The union had threatened to strike if the state-owned enterprise extended the wage deal to it. Transnet has said it “will not implement the proposed wage increases and other benefits to Untu members. Transnet will, however, implement the final offer in respect of Satawu members, as well as all other employees”.
Untu did not sign the wage agreement reached last week that came into effect on April 1. The union has revised its 12% wage increase demand to 10%. Its demands include a one-year deal, a R2,500 housing allowance, R2,500 medical aid allowance and the removal of a cap on overtime.
Plaatjie said it Monday’s meeting “did not yield any positive progress. As a result, the mutual interest dispute conciliation process regarding the deadlock on the wage negotiations will proceed as scheduled on Monday, from 9am at the Transnet Bargaining Council”.
“Untu remains hopeful that the commissioner will be able to bring the parties closer together and [that] an improved offer will be tabled, which, as a responsible union, we can then take back to our constituencies for a mandate,” Plaatjie added.
“This will be the last attempt between Untu and management to resolve the impasse before a certificate of non-resolution is issued, which, if issued, will enable Untu members to embark on protected industrial action should members choose to do so.”
Transnet reported a R2.2bn loss for the six months to end-September. Interest on its R100bn debt consumes R1bn a month and analysts have said the company would require financial assistance from the state to fulfil its role as a mainstay of the economy and retain access to capital markets.
Transnet has said it continued to engage with Untu to ensure labour peace for the sustainability of Transnet, its employees, and the country.
Separately, a wage dispute lodged at the CCMA by Untu and Satawu at the Passenger Rail Agency of SA (Prasa) is set to the heard on Thursday. The unions declared the dispute in April after Prasa management refused to formally table a wage offer. The decision to refer the matter to the CCMA came after three attempts to initiate wage negotiations for 2025/26.
“To date, Prasa management has neither responded to the formal wage demands presented by labour nor presented any wage offer, effectively stalling the negotiation process,” Plaatjie said.
“Instead of engaging in good faith, management has repeatedly offered excuses, despite knowing full well, as per the Prasa Bargaining Forum Rules of Engagement, that wage negotiations should have commenced in October 2024. Management is deliberately stalling the negotiations under the pretence of unpreparedness.”
Satawu and Untu’s consolidated wage demands include a 15% across-the-board wage increase. Inflation is hovering at about 3%.
The unions are also demanding a R3,000 housing subsidy, a standby allowance of R50 an hour, a night shift allowance of R10 an hour, a moratorium on retrenchments and a medical aid subsidy with the employer contributing 70%.
Prasa incxurred irregular expenditure of R3.8bn in 2022/23, earning a qualified audit opinion from the auditor-general for the period.
From 2018/19 to 2021/2022 the auditor-general issued a disclaimer on the parastatal’s financial statements. A disclaimer signifies that 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 in 2022/23.
The rail operator generated revenue of R119m from fares, operating lease rental income of R620m, other income of R181m and interest received of R1.7bn.
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