Unions at rail operator Prasa are pinning their hopes on the CCMA to intervene in a wage dispute that threatens to turn into debilitating a strike if no deal is reached.
The United National Transport Union (Untu) and SA Transport and Allied Workers Union (Satawu) want the dispute resolution body to help broker an acceptable wage agreement between themselves and the Passenger Rail Agency of SA.
In April, Prasa was given 30 days to table a “just and fair” wage offer to its workforce following a dispute lodged by the two biggest unions at the state-owned rail operator.
The breakdown was as follows: April 10-May 10 — Prasa to complete its mandating process; May 11-May 26 — facilitated collective bargaining process led by a CCMA commissioner.
Untu spokesperson Atenkosi Plaatjie said Prasa management missed its May 10 deadline to table an offer. “Therefore, there will be a CCMA-facilitated collective bargaining process. This will be the final CCMA-facilitated intervention process and if no resolution is reached, the CCMA will issue Untu a certificate of nonresolution, meaning that we can embark on a strike at Prasa,” Plaatjie said.
Untu has 6,930 members at Prasa.
Satawu spokesperson Amanda Tshemese confirmed the matter would be heard by a CCMA commissioner, for an amicable solution.
Untu and Satawu declared the dispute in March after Prasa management refused to formally table a wage offer. The decision to refer the matter to the CCMA came after three failed attempts to initiate wage negotiations for 2025/26.
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 incurred irregular expenditure of R3.8bn in 2022/23, earning a qualified audit opinion from the auditor-general for the period. From 2018/19 to 2021/22 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 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.
Prasa has been approached for comment and once received it will be added to this story.
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