Unions reject Transnet's latest wage offer of 4.5%

Unions have rejected Transnet's new wage offer of 4.5% increase across the board, arguing it is not related to inflation.

Transnet offered a 4.5% across the board increase in the current year which will be implemented from October 1 2022, a 5.3% increase in the 2023/2024 financial year and another 5.3% increase in the 2024/2025 financial year.

The company also offered a 4.5% increase in medical aid allowance which will be adjusted in line with the across the board increases in the subsequent two years.

United National Transport Union (Untu) and the SA Transport and Allied Workers Union (Satawu) rejected the offer.

“We are rejecting the offer because it is still way off CPI (consumer price index). It is rejected because it is very far from being a CPI-related increase,” said Untu general secretary Cobus van Veeren.

Satawu also rejected the offer, saying the employer is “greedy and selfish”.

Transnet employees are demanding a wage increase that is above the 7.6% inflation.

Exports and imports have been severely affected by the strike, with the business community warning that the impasse will have devastating impact on the economy.

Transnet spokesperson Ayanda Shezi said the negotiations have not been easy.

“The negotiations have been a delicate balancing act for the company — mindful not only of the affordability and sustainability of the wage increases for the business, but also having full appreciation of the cost pressures that employees face currently.

“The company remains committed to concluding the wage negotiations speedily and amicably, in the interests of employees, the company and the economy.”

dlaminip@sowetan.co.za