Transnet, Untu reach wage increase agreement

Transnet has reached a wage increase agreement with the majority union at the company, United National Transport Union (Untu), ending the current strike by workers.

The three-year agreement signed with Untu includes a 6% wage increase in the basic wage for level H to L and 6% on the annual cost-to-company for level G in the first year. Category H refers to workers such as supervisors, L is for the lowest band of workers while G is for sectional managers.

In the second year, workers will get a 5.5% increase in the basic wage for levels H to L and 5.5% annual cost-to-company package for level G. In the third year, workers will earn a 6% increase in the basic wage for levels H to L and a 6% rise on the annual cost-to-company package for level G.

Workers will also enjoy an increase in the medical aid subsidy in line with the increases in the basic wage over the duration of the agreement.

“This ends the current industrial action by Untu members with immediate effect. The company’s priority in the immediate 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. As at 30 September 2022, Untu had 24,992 members, accounting for 53,9% of bargaining unit employees at Transnet," said Transnet spokesperson Ayanda Shezi.

The agreement, which applies to all bargaining unit employees including those who are not members of Untu, is effective from April 1 2022.

Untu was the first union to go on strike on October 7 after wage negotiations could not yield an agreement. Both Untu and the SA Transport and Allied Workers Union (Satawu) have been demanding an increase which is related to inflation currently at 7.6%.

The strike, which has cost the economy billions of rand, brought to a standstill the movement of goods on rail and ports, leaving container vessels stuck at the country’s port.

The business community lamented the strike as it began at a time when retailers were importing goods ahead of the festive season. Mining, agriculture and manufacturing sector was also counting the cost of each day as the two require imports to produce.

The strike would not have come at a worse time as economic growth is currently being severely hampered by loadshedding imposed by Eskom.

Satawu is yet to sign the wage agreement.