Transnet is heading for a repeat of the 2010 three-week-long strike, the United National Transport Union (Untu) has said in a statement forwarded by the Transit Assistance Bureau (Transist).
The statement said that if Untu and the South African Transport and Allied Workers’ Union (Satawu), the only two recognised trade unions in the Transnet Bargaining Council (TBC), embarked on a protected strike it would be the first in the state-owned company (SOE) in 11 years and a first for Portia Derby who became the SOEs CEO fifteen months ago.
Untu secretary general Steve Harris says the members of the union are angry and frustrated.
“They were the ones who worked tirelessly through the hard lockdown of the Covid-19 pandemic to ensure that South Africans still have access to goods and food while their managers were sitting at home,” the Untu statement says.
“An offer of a 2% wage increase after having the board of Transnet admitting that more than R210 billion was lost at Transnet due to the decade of state capture, is a slap in the face of each worker. Workers cannot bear the brunt because of the greed of a few individuals who have to date not been arrested and prosecuted,” says Harris.
Untu argues that since Derby assumed her position in February last year and appointed new executives in the months afterwards at an additional cost of R65 million to Transnet’s wage bill, the trust relationship between Transnet and organised labour has completely broken down.
“This was worsened after Transnet shared some of its future plans in a strictly confidential briefing, only for it to be announced by Public Enterprises Minister Pravin Gordhan the very next day.
“Transnet also announced that it will be entering into private strategic partnerships with service providers to take over the running of certain railway lines and to take over certain responsibilities in the ports without consulting with organised labour. The Unions heard about these plans in the media.”
The Untu statement adds that Derby announced that the head office of Transnet National Ports Authority (TNPA) would relocate from Johannesburg to Ngqura without any discussions with organised labour.
Harris says this is money which Transnet could have used towards annual wage increases that were due on April 1.
Transnet’s latest offer is a 2% wage increase across the board, but the SOE refuses to increase medical aid subsidies or the housing allowance, Untu says.
“Transnet also insists on capping overtime at R211 596 per year – R17 633 per month – in accordance with the Basic Conditions of Employment Act (BCEA), although this means that its workers are working overtime for less money than what they would normally earn per hour, says Harris.
“Although Transnet insists that more than 2 900 employees of Transnet Engineering - at a cost of R1.5 billion per annum - are redundant, there has to date not been an explanation forthcoming from government as to why the refurbishment of train coaches of the Passenger Rail Agency of South Africa (Prasa) and the building of the new coaches of Prasa’s People’s Trains are done by private consortiums instead of Transnet who used to do the work.
“In the meantime, Transnet pleads poverty, but still advertised vacancies for 13 managers without considering internally which individuals might be suitable to take up the promotion.”
Harris says to Untu the no retrenchment clause in the wage agreement is non-negotiable.
“It will make or break the 2021 wage negotiations as the preservation of jobs is always paramount for any trade union.
Untu says it attempted to accommodate Transnet by lowering its demand to a 7% annual wage increase across the board without prejudice.
“Transnet however continued to keep their hands in their pockets, offering only 2% across the board. Transnet says it cannot afford to increase the medical aid subsidy or the housing allowance, while organised labour wants both to be increased to R 2 300 per month.”
Harris also says the SOE wants to keep on abusing rail network workers by continually renewing contracts for short terms.
“Untu demands the insourcing of all contract workers.”
(*) This story has been updated since first posted yesterday. Out of consideration to the negotiations between Transnet, the United National Transport Union (Untu) and others, the initial post was held back as the freight utility said that talks were at a sensitive stage. This was confirmed by Stave Harris, Untu's secretary general.
