Durban - Transnet said on Monday that it had reached a wage agreement with United National Transport Union (Untu), one of the labour unions whose members went on strike earlier this month.
However, the South African Transport and Allied Workers Union (Satawu) said that it had not reached an agreement with Transnet and its members would remain on strike.
Transnet spokesperson Ayanda Shezi, said Transnet SOC Limited (Transnet) and the company’s majority union Untu had reached a three-year wage agreement today, applicable for the period April 1, 2022 to March 31, 2025.
“This ends the current industrial action by Untu members with immediate effect. The company’s priority immediately is clearing any backlogs across the port and rail system – prioritising urgent and time-sensitive cargo, and implementing recovery plans, working with industry and customers.”
Shezi added that as at September 30, Untu had 24 992 members, accounting for 53.9% of bargaining unit employees at Transnet.
“The agreement, which applies to all bargaining unit employees including those who are not members of Untu, is effective from April 1, 2022, and will be implemented from October 1.”
The agreement includes the following elements:
- 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 the medical subsidy for the 2022/23 financial year will be implemented from October 1.
- • An increase in the housing allowance commencing from the year 2023/24 and 2024/25.
- • The back-pay for the period April 1 to September 30 will be paid in two tranches – three months’ backpay on November 15, and three months’ backpay on January 16, 2023.”
Amanda Tshemese, Satawu head of communications, said their picketing rules remained in place.
“We remain on strike and have not reached an agreement with Transnet.”
Untu could not be reached for comment at the time of publication.