South Africa’s freight utility, Transnet, has confirmed that its labour negotiations with the United National Transport Union (Untu) and the South African Transport and Allied Workers’ Union (Satawu) are at a sensitive stage.
Yesterday the state-owned enterprise (SOE) said that the negotiating parties in the Transnet wage discussions had entered into a conciliation process last week.
“The talks are happening under difficult economic conditions and a constrained operating environment.”
Untu secretary general Steve Harris last week confirmed that conciliation efforts would hopefully result in a better wage deal for the two unions’ members, said to represent more than 80% of the SOE’s labour force.
Transnet recently tabled a new wage offer of at least 3%, but workers want 7%.
Harris last week said although both Untu and Satawu were keen to avoid going on strike, nothing less than a 7% wage increase across the board would be accepted.
He said they remained hopeful of a positive resolution, a sentiment shared by Transnet.
“We are encouraged that both parties have committed to continue to engage during this crucial phase of negotiations, with a view towards an amicable solution.
“We remain optimistic that a wage agreement will be concluded, and we will keep all stakeholders updated on progress.”
Should Untu and Satawu go on strike, more than 50 000 employees could down tools for as long as three weeks.
The last time organised labour action of this scale was experienced by the country’s freight and rail parastatal was in 2010.