Transnet has tabled a revised three-year wage increase of up to 5.3%, to its recognised workers unions as the industrial action enters its second week today (Thursday).
This follows two days of wage talks facilitated by the Commission for Conciliation, Mediation and Arbitration (CCMA).
Transnet said the wage offer, which would, upon acceptance, be effective from April 1, 2022, entailed a 4.5% increase across-the board. It would be implemented from October 1, 2022.
The state-owned logistics company said it would implement increases of 5.3% in the 2023/24 and 2024/25 financial years, respectively.
Transnet would also implement a 4.5% increase in the medical aid allowance in 2022/23, which would be adjusted in line with the across-the-board increase in the subsequent two years.
It said the backpay would be paid in two tranches – three months’ backpay on November 15, 2022 and three months’ backpay on January 16, 2023.
Transnet spokesperson Ayanda Shezi said the negotiations had been a delicate balancing act for the company.
Shezi said Transnet has been mindful of the affordability and sustainability of the wage increases for the business, and of the financial pressure employees faced.
“Whilst the parties have not settled on this offer, engagements are ongoing. We would like to thank all stakeholders for their continued understanding and support during this process,” Shezi said.
“The company remains committed to concluding the wage negotiations speedily and amicably, in the interests of employees, the company and the economy.”
Transnet’s recognised workers unions – the United National Transport Union (Untu) and the South African Transport and Allied Workers Union (Satawu) – have rejected Transnet’s below-inflation wage offers.
The strike by thousands of Transnet employees has had a crippling effect on economic activity as perishable and non-perishable goods remain stuck at the ports and cannot be exported timeously.
Yesterday, government ministers urged both parties to resolve the impasse as soon as possible in order to stem potential job losses in other industries.
Public Enterprises Minister Pravin Gordhan, Employment and Labour Minister Thulas Nxesi and Agriculture, Land Reform and Rural Development, Thoko Didiza, released a joint statement on Wednesday, expressing the government’s view on the strike.
The ministers said the government was concerned about its negative impact on the economy, particularly the sectors that were dependent on Transnet for their logistical services.
“We need to remind all that if we are able to, as soon as possible, resume exports of agricultural products (eg. Citrus, grapes, berries), mineral resources (eg. Coal, iron ore etc.) and other manufactured products, we will be contributing to sustaining hundreds of thousands of jobs across the economy.”
BUSINESS REPORT