Transnet has revised its wage offer to its 35 000 workers in an eleventh-hour bid to avert a strike that will shut down rail and port operations across South Africa.
The parastatal’s CEO, Portio Derby, called a meeting with the United National Transport Union and SA Transport Allied Workers’ Union leaders late on Tuesday to discuss its wage offer and the looming industrial action that is set to see thousands of port workers downing tools at 12.01am on Thursday, 6 October.
Transnet spokesperson, Ayanda Shezi, said in a statement on Wednesday morning that the employer had tabled an “improved offer” to union leaders during the meeting.
“Transnet has tabled an improved offer to the leadership of its recognised labour unions at a meeting held yesterday evening, as part of ongoing efforts to find a resolution to the current deadlock in the wage negotiations.”
She said Transnet would table the offer formally at the Bargaining Council on Wednesday, 5 October 2022 with UNTU and on 7 October 2022 with SATAWU.
Shezi said the meeting had ended with Transnet making a revised offer for bargaining unit and management employees, including the following key elements:
• A 3% increase to guaranteed pay, with effect from 1 April 2022.
• The back-pay for the April to September 2022 period will be made in three equal amounts beginning January, February, and March 2023.
• From the end of October 2022, salaries will be paid with the 3% increase.
• A once-off ex-gratia payment to each employee, which amounts to R7 600 before tax, will be paid at the end of the financial year.
“This helps Transnet to raise the money over the remaining six months of the year from our operations. The revised offer further increases Transnet’s fixed salary base and therefore, operating costs,” Shezi said.
“Transnet’s wage bill already accounts for 66% of the company’s monthly operating costs, and given the current operational and financial performance of the business, it would be ill-considered to offer unsustainable wage increases.”
However, she added that, given the role that Transnet played in the economy, it was “equally crucial that everything possible is done to ensure that a strike is averted”.
“Transnet remains confident that, with this revised offer, a resolution can be reached. This will allow the organisation to focus its full attention on improving operational performance and delivering value to our stakeholders,” said Shezi.
However, UNTU General Secretary Cobus Van Vuuren said on Wednesday morning that the strike was still on “so far” after the meeting.
“Strike still on so far. Further engagements happened last night and will continue today during which Transnet will present a revised offer,” Van Vuuren said.
Meanwhile, the SA Association of Freight Forwarders told its members in a circular on Wednesday that it was appealing to President Cyril Ramaphosa to intervene in the wage dispute. In the circular, SAAFF told members that its representatives had attended an industry-wide meeting to discuss the two unions’ notices, which had indicated that wage negotiations had broken down and national strikes would commence on October 6th and 9th respectively. UNTU, which represents about 33 000 port workers, is set to begin its strike action first, followed by SATAWU.
“At the meeting were over 140 representatives from a broad range of port users and cargo owners, along with respective representative bodies. The meeting concluded that a strike at ports and throughout the Transnet network would have major short- and long-term consequences for supply chains and the national economy,” SAAFF said.
“It is now critical that government, at the most senior level understands such consequences and that state intervention, bearing in mind that the state is the only shareholder in Transnet, is imperative.
“A second communication to the office of the President is being prepared and will reach him today.”
SAAFF said it would continue to take a leadership role in efforts to avoid any interruption in the country’s port supply chain.
