Logistics utility Transnet announced yesterday that it had reached a three-year wage settlement with its workers who will be awarded increases ranging from 6%, backdated to April this year.
Transnet said the agreement, brokered by the Commission for Conciliation, Mediation and Arbitration (CCMA), ends the current industrial action by the United National Transport Union (Untu) members with immediate effect.
It said the priority now that the 24 992 members of Untu, accounting for 53,9% of bargaining unit employees at Transnet were going back to work, was the clearing up of any backlogs across the port and rail system – prioritising urgent and time-sensitive cargo, and implementing recovery plans, working with industry and customers.
The agreement, which Transnet says spans the period from April this year to March, 2025 would be implemented from the beginning of the current month.Transnet said the agreement includes in the first year a 6% increase in the basic wage for levels H to L, and 6.0% on the annual cost-to-company package for level G.
The second year sees 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.
In the final year, workers will be awarded a 6% increase in the basic wage for levels H to L, and 6.0% on the annual cost-to-company package for level G.
“An increase in the medical aid subsidy is in line with the increases in the basic wage, over the duration of the agreement. The increase on the medical subsidy for the 2022/23 financial year will be implemented from October 1, 2022. The back-pay for the period April 1 to September 30, 2022 will be paid in two tranches – three months’ back-pay on November 15, 2022, and three months’ back-pay on January 16, 2023,” Transnet said.
There is also an increase in the housing allowance commencing from year 2023/24 and 2024/25.
“Transnet appreciates the support received from all stakeholders, including the CCMA, the government, customers and industry,” it said.
The South African Transport Workers Union (Satawu) though said it was not part of this agreement and remained steadfast by its picketing rules.
“We are not aware of that agreement, I only just saw it. We will not sign for something without job security,” said Satawu spokesperson Amanda Tshemesa.
Untu officials were unavailable at the time of compiling the report, presumably because they were still in consultations over the agreement.The strike at Transnet is entering its second week, as widespread concern for the fate of the economy has been expressed by most sectors of the economy linked to the movements of goods.
BerriesZA said more than 80 containers of berries destined for European markets have been sitting at the ports, with the strike currently costing the industry more than R134 million a week and putting thousands of jobs at risk.
“Even if a solution to the current impasse is found in the next day or two, the backlog in the berry value chain will take weeks to clear resulting in hundreds of millions of rand in further losses for the sector,” it said.
This includes the livelihoods of 30 000 workers in the berry industry, with at least 90% of these employees being economically vulnerable women in rural communities.
BUSINESS REPORT