Transnet’s new deal to workers unlikely to avert strike

Transnet’s revised wage offer to unions is unlikely to avert a strike due to begin on Thursday at the state-owned rail and logistics operator where over 60% of the workforce will down tools. 

As unions and Transnet were locked in a meeting late on Wednesday in a last-ditch effort to avoid the strike, United National Transport Union’s (Untu) general secretary Cobus van Vuuren was adamant the strike would go ahead.

“Strike at this time is continuing and further engagements are scheduled for [Wednesday] with Transnet,” Van Vuuren said. Untu represents 34,000 members at Transnet. 

He said Transnet’s wage proposals fail to address critical issues such as medical aid, housing allowances and increases in consumer inflation, prompting the union to act on the strike certificate issued in August. 

Transnet is a key role player in SA’s economy. The rail operator’s 31,000km rail infrastructure is used to ferry essential commodities such as coal and iron ore. However, in recent years it has been damaged by vandalism and theft, forcing many companies to transport goods via roads instead of railways, causing revenue losses not only to Transnet, but also to clients.

Transnet revised its wage offer from 1,5% to 3% on Tuesday across the board effective from April 2023 and a one-off payment of R7,600 before tax to each employee. 

“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,” Transnet said in a statement. 

This offer was formally to be tabled at the Bargaining Council on Wednesday with Untu, and on Friday with the SA Transport and Allied Workers’ Union (Satawu).

However, subject to approval from the respective union members, the industrial action that threatens to negatively affect the company’s operations will go ahead as planned. 

Unions across various sectors have been demanding above-inflation increases, citing the rising cost of living. SA’s inflation rate is at 7.6%. 

“We have submitted our picketing rules to the company and the Bargaining Council for consideration as part of preparations for strike,” said Satawu deputy general secretary Anele Kiet. 

Kiet says members are expected to give feedback on whether they accept the revised wage offer by Thursday. 

Satawu’s general secretary, Jack Mazibuko, added that the union, which has more than 18,500 members at Transnet, is willing to move from its demand of 13.5% to a 7% wage increase “because that is a good deal and we are then able to accept”. 

“We told them (Transnet) this on Tuesday, but it is up to members to accept or reject the Transnet deal,” Mazibuko said.

maekot@businesslive.co.za