Untu signs Transnet three-year wage deal

The United National Transport Union (Untu) has signed a three-year wage agreement with the state-owned ports, rail and pipelines group Transnet, bringing the union’s 12-day strike to an end.

This comes after Untu and Transnet engaged in a wage negotiations process facilitated by the Commission for Conciliation, Mediation and Arbitration (CCMA) on Monday.

In a statement, Transnet noted that Untu, with 24 992 members, accounts for 53.9% of its bargaining unit employees.

The group says the agreement, which offers a range of increases of between 5.5% and 6%, applies to all bargaining unit employees, including those who are not members of Untu.

It says the agreement is effective from 1 April 2022 and will be implemented from 1 October 2022.

The wage agreement is broken down as follows:

  • Year 1: A 6% increase in the basic wage for levels H to L, and 6% on the annual cost-to-company package for level G
  • Year 2: A 5.5% increase in the basic wage for levels H to L, and 5.5% on the annual cost-to-
    company package for level G
  • Year 3: A 6% increase in the basic wage for levels H to L, and 6% on the annual cost-to-
    company package for level G
  • An increase in the medical aid subsidy, in line with the increases in the basic wage, over the
    duration of the agreement. The increase on medical subsidy for the 2022/23 financial year
    will be implemented from 1 October 2022
  • An increase in the housing allowance commencing from year 2023/24 and 2024/25
  • The back-pay for the period 1 April to 30 September 2022 will be paid in two tranches –
    three months’ back-pay on 15 November 2022, and three months’ back-pay on 16 January

“The company’s priority is the immediate clearing of any backlogs across the port and rail system, prioritising urgent and time-sensitive cargo, and implementing recovery pans, working with industry and customers,” reads the statement.

“Transnet appreciates the support that has been received from all stakeholders, including the CCMA, government, customers and industry broadly.”

Meanwhile, the South African Transport and Allied Workers Union (Satawu) rejected the 6% wage
increase offer presented by the CCMA on Friday (14 October).

In a statement issued on Sunday Satawu said: “The organisation has rejected the 6% increment by the employer as per the mandate of the workers. Until the workers give us a new mandate, the strike continues.”

At the time of publication Satuwa did not comment further.

* Nondumiso Lehutso is a Moneyweb intern.

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