STRIKING Transnet workers have rejected the 4,5% wage increase offered by the company.
They described it as an insult.
The state-owned enterprise released a statement on Thursday, 13 October with its three-year offer to the South African Transport and Allied Workers Union (Satawu) and United National Transport Union (Untu) members who have been on strike for eight days.
It came two days after wage talks facilitated by the Commission for Conciliation, Mediation
and Arbitration (CCMA).
Untu’s deputy general secretary Dan Khumalo said it was unfortunate that Transnet was playing games with the lives of workers with that kind of offer.
“We reject the offer. It’s unfortunate. One would call it an insult. Transnet is playing games. It’s like we are skipping the rope or we are playing dice,” he said.
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Transnet, which operates South Africa’s rail freight and ports, said the offer, which would upon acceptance be effective from 1 April 2022, entails the
following:
• 4,5 percent across-the board (ATB) increase in the current year, which will be
implemented from 1 October 2022
• 5,3 percent (ATB) increase in 2023/24
• A 5,3 percent (ATB) increase in 2024/25
• A 4,5 percent increase in the medical aid allowance in 2022/23, which will be adjusted in line with the ATB increase in the subsequent two years
• The back-pay will be paid in two tranches – three months’ back-pay on 15 November 2022, and three months’ back-pay on 16 January.
“While the parties have not settled on this offer, engagements are ongoing. We would like to thank all stakeholders for their continued understanding and support during this process.
The company remains committed to concluding the wage negotiations speedily and amicably, in the interests of employees, the company and the economy,” it said.
Khumalo said they made it clear at the beginning of the negotiations that they were not in favour of multi-year agreement.
He said since the intervention of Public Enterprises Minister Pravin Gordhan, Employment and Labour Minister Thulas Nxesi, and Land Reform and Rural Development Minister Thoko Didiza, things got worse because Transnet lowered the offer from 5% to 4,5%.
“We are basically perturbed as to why ministers intervened. What was their intervention if now the offer that is on the table will be worse that what was there before their intervention,” said Khumalo.
He said they will consider an offer that is in line or above the inflation rate
The unions are demanding an increase of between 12% and 13,5%.
Satawu’s deputy president, Nkoketse Sepogwane said: “The employer, late last night, regressed from the 5% they were offering to 4.5% and we deadlocked again. Then we decided to take a break again and go to the picketing lines with our members because the employer is not negotiating in good faith anymore, and the employer is stalling. We thought the negotiations were progressing because of the involvement of the CCMA, but the employer is just not pulling their side.”
The Road Freight Association said most Transnet terminals at the ports had either come to a grinding halt or were operating at very low input.
They said because of limited operations they had been unable to access the ports to pick up containers.
The ongoing strike is said to cost Mzansi billions of rands.
In a joint statement, Gordhan, Nxesi and Didiza said the government was extremely concerned about the negative impact on the economy, especially those sectors that were dependent on Transnet for their logistical services.
“We need to remind all that if we are able to, as soon as possible, resume exports of agricultural products (eg. citrus, grapes, berries), mineral resources (eg. coal, iron ore etc.) and other manufactured products, we will be contributing to sustaining hundreds of thousands of jobs across the economy.”
