LabourPREMIUM

Numsa and Gautrain reach deal on four issues but not pay demand

Numsa has revised its wage demand from 7% to 6%, while SA’s inflation rate was 2.8% in April

Gautrain plays a pivotal role in the economy of Gauteng. Picture: FREDDY MAVUNDA
Gautrain plays a pivotal role in the economy of Gauteng. Picture: FREDDY MAVUNDA

The National Union of Metalworkers of SA (Numsa) and Gautrain operator Bombela Operating Company (BOC) have reached consensus on four key demands, with the above-inflation pay increase demand the only issue still unresolved. 

Numsa has revised its wage demand from 7% to 6%, while BOC has not moved from its 4.2% wage offer. SA’s inflation rate meanwhile edged up from March’s 2.7% to 2.8% in April.

According to information from the BOC, the parties have reached agreement on a housing allowance of R1,400 (currently R1,300), transport allowance of R125 (R112), night shift allowance of R40 per hour (R37 per hour) and performance bonus of R10,016 (R9,612). 

Numsa embarked on a balloting process at Gautrain on Tuesday over its 6% wage demand. Business Day understands BOC will comment once the process has been concluded. When contacted for comment, Numsa spokesperson Phakamile Hlubi-Majola said: “We remain deadlocked.”

Numsa recently called on BOC to table a meaningful wage offer to avoid an “imminent crippling strike” that could result in a “total shutdown of services”.

BOC is a private company contracted by Bombela Concession Company (BCC) to operate and maintain the Gautrain systems. 

Wage talks between BOC and SA’s biggest union deadlocked on June 9 and attempts by the CCMA to break the impasse failed recently, resulting in the CCMA’s issuing the union with a strike certificate.

A strike could be detrimental as 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.

Numsa, with more than 450,000 members, embarked on a 17-day industrial action at Gautrain last year, which culminated in the parties settling on a one-year 6.8% wage deal in July 2024, which expired recently. 

The union had initially demanded a 13% wage increase last year, which was later revised down to 9%, before the parties settled at 6.8%. 

Gauteng premier Panyaza Lesufi has said the provincial government will invest R120bn in the expansion of Gautrain to the following areas: Soweto via Fourways, Mamelodi, Atteridgeville, Lanseria and Springs. The expansion project is expected to create 125,000 jobs. 

mkentanel@businesslive.co.za

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