Roadfreight industry agrees three-year wage deal

In a major coup for the freight industry, negotiators have successfully avoided industrial action in the roadfreight sector following the signing of a three-year wage agreement with unions last week. Months of intense negotiation finally came to an end when negotiators and unions reached consensus on wage increases for 2016, 2017 and 2018 giving the industry a much-needed breather. The deal ensures stability in the roadfreight sector - notorious for prolonged and difficult wage negotiations not to mention violent strikes – for the next three years. A similar agreement was brokered in 2012, which means that the industry will have seen six years of industrial peace at the end of this agreement. This is a major accomplishment for an industry that only three years ago was at such loggerheads with labour. “We are very pleased with the outcome of the negotiations that ensure labour peace and stability for the industry for the next three years,” Magretia Brown-Engelbrecht, labour manager for the Road Freight Association and one of the chief negotiators, told FTW. “As a whole this agreement is an achievement as we managed to do this without a strike. If we look at the history of the roadfreight sector then wage negotiations more often than not are coupled with strike action.” In 2012 South Africa was brought to a near standstill when transport workers went on strike in what was also extremely violent industrial action. Workers remained on strike for a total of 19 days while several people lost their lives during the strike. Another coup for the negotiators is the actual increases agreed upon. Whilst unions initially demanded a 25% per annum increase, the final agreement signed was for 9% in 2016, and 8.5% in 2017 and 2018. “I can honestly say the approach to the negotiations this year – from both sides – was very mature and there was absolute commitment from all parties,” said Brown-Engelbrecht. “There is no denying the negotiations were difficult and tough at times, but negotiators representing both the employers and the employees were really committed to finding solutions that were workable all round.” The deal is considered to be fair and beneficial to both employers and workers. “It also allows for employers to prepare for wage increases for the next three years, while workers know what they are getting and can also prepare accordingly,” said Brown- Engelbrecht. Whilst the agreement has been signed and accepted by the majority of parties involved in the negotiations, it only becomes binding once the Minister of Labour extends it to non-parties involved. It is not known how long this process will take, but Brown- Engelbrecht said they were positive about the process.