The United National Transport Union (Untu) has rejected Transnet’s latest revised wage offer which it presented to unions on Thursday, saying it was prepared to “take to the streets if necessary” should negotiations fail.
Transnet said in a statement that its latest three-year offer, which includes a 5.5% wage increase in the first year, a 5.5% increase in the second year, and a 5% increase in the third year, was “meant to steer the parties towards a settlement”.
“This remains above inflation and represents a 16% wage increment over the three-year period. This across-the-board offer includes an increase in basic salary and related components (13th cheque and pension fund contribution), medical aid subsidy and housing allowance,” the ports and rail operator said.
“Transnet considers the offer to be reasonable and fair given the current financial and operational challenges and takes into consideration the cost of living, the well-being of employees, job security and the long-term sustainability of the organisation. The organisation remains committed to a three-year wage structure, which is conducive to a stable and predictable work environment.”
However, Untu General Secretary, Cobus van Vuuren, said the union “outright rejects” the latest offer and reiterated its demand for a 10% across-the-board wage increase and a non-retrenchment clause for the duration of the agreement.
“This proposal is an insult to our members, and we refuse to take it back for a mandating process. It is appalling that management has not budged an inch to address employees’ legitimate demands for a fair and just wage increase, especially in the face of a crippling economic climate,” Van Vuuren said.
“Their refusal to negotiate in good faith shows a blatant disregard for the workers who keep this organisation running. Therefore, the Transnet salary/wage 2025/26 has officially entered the ‘two-week cooling-off’ period.”
The cooling-off period follows an intense three-day negotiation period during which labour tabled its demands and management tabled its offer.
Van Vuuren said the union was “deeply disappointed that despite management’s claims they were not engaging in Chinese-style bargaining tactics, their actions tell a different story”.
“If they were negotiating in good faith, they would have tabled their final offer today; instead, they merely presented a revised proposal. Management is deliberately stalling this process once again, like in 2022,” he said.
He added that Transnet’s “inability to guarantee job security” by agreeing to a firm non-retrenchment commitment for the period was “unacceptable” and this was a “non-negotiable” demand for workers.
The union had received “extremely alarming feedback” from Transnet’s management regarding the retrenchment clause demand, he said.
“Management told labour that they cannot agree for the sake of agreeing, as when the Private-Sector-Partnerships (PSPs) come in, they will have no control over retrenchments. This proclamation rings the sound of alarm, as we can see that the retrenchments are on the horizon, as we have been warned for many years.”
He added that Untu appreciated the honesty but demanded that labour must be consulted regarding any arrangements or agreements between Transnet and PSPs to ensure job security.
“With looming private-sector reforms, Untu will not allow workers’ livelihoods to be left to chance. We cannot take the offer above back to members, therefore our demands will remain the same,” Van Vuuren said.
Wage negotiations should be concluded by April 1, but Van Vuuren did not rule out the possibility of industrial action.
“Untu is fully prepared to take to the streets if necessary if negotiations fail to secure a just and fair wage increment for our members, who have long been bearing the brunt of the rising cost of living. We will not hesitate to mobilise for their cause,” he said.
“The cost of living has escalated significantly, with the food basket rising by 7.1% from 2023, making it increasingly difficult for most households to make ends meet.”
The National Energy Regulator of South Africa’s recent approval of a 12.7% increase in Eskom’s electricity tariffs for the 2025/26 financial year, and the possibility of a VAT hike, has compounded workers’ economic burdens.
“Labour and management are set to reconvene negotiations on March 26 when we will have the last attempt to find each other before reaching deadlock,” Van Vuuren said.
