MOSSEL BAY NEWS - Transnet SOC Ltd (“Transnet”) has tabled an improved offer to the leadership of its recognised labour unions - South African Transport Allied Workers Union (SATAWU) and United National Transport Union (UNTU) - at a meeting held yesterday evening, as part of ongoing efforts to find a resolution to the current deadlock in the wage negotiations.
Transnet will table the offer formally at the Bargaining Council on 5 October with UNTU and on 7 October with SATAWU.
The meeting on Tuesday ended with Transnet making a revised offer for the 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 period will be made in three equal amounts beginning January, February, and March 2023.
- From the end of October, salaries will be paid with the 3% increase.
- A once-off ex gratia payment to each employee, which amounts to R7 600 before tax, to 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 its operations.
The revised offer further increases Transnet’s fixed salary base and therefore, operating costs.
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, given the role that Transnet plays in the economy, it is 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.
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