TURNAROUND
Prasa says it can hike pay and still cut staff costs
Prasa’s offer raises union expectations the agency will offer voluntary severance packages and clamp down on employee costs
Plans by the Passenger Rail Authority of SA (Prasa) to slash staff costs by R579m this financial year would not deter it from raising pay 8%, the agency said on Monday. A strike now seems unlikely. The South African Transport and Allied Workers Union (Satawu) say most of its members favour an 8% increase. Prasa has also promised workers there will be no forced retrenchments. Prasa’s 8% offer to its 17,000 employees in a one-year deal has raised union expectations that the agency will offer voluntary severance packages and take other steps to keep a lid on employee costs. Prasa’s negotiating team had indicated forced retrenchments could take place in 2018. Satawu spokeswoman Zane le Sabela said on Monday that six of the union’s nine regions accepted the offer. A few outstanding matters needed to be finalised with management this week, she said. The United National Transport Union (Untu) said it expected to finalise its position by Tuesday. Prasa said on Monday it would comment on pa...
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