Transnet and Satawu sign three-year wage deal

Cash-strapped Transnet and the SA Transport and Allied Workers Union (Satawu) have signed a wage deal that matches the union’s demands for above-inflation increases of 17.5% over three years.

The wage agreement was concluded during a round of talks at Esselen Park outside Kempton Park on Wednesday, following a 10-day cooling-off period from March 7, when Satawu and the United National Transport Union (Untu) rejected Transnet’s revised offer that would have seen workers receiving increases of 5.5% for the first and second years and 5% in the last year of the agreement. 

In a statement issued at 12.44am on Thursday, Transnet, which reported a R2.2bn loss for the six months to end-September, said it had reached a three-year wage deal with Satawu after tabling a full and final offer for increases of 6% in the first and second years and 5.5% in the final year of the agreement. Inflation is hovering around 3%. 

Interest on Transnet’s R100bn debt consumes R1bn a month and economic pundits have said the company would require financial assistance from the state to fulfil its role as a crucial player in the economy and retain access to capital markets. 

“The above-inflation offer, which comes into effect on 1 April 2025, represents a 17.5% wage increment over the three-year period. It includes increases to basic salary and related components (13th cheque and pension fund contribution), medical aid subsidy and housing allowance,” Transnet 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 wellbeing of employees, job security and the organisation’s long-term financial sustainability.”

Untu has rejected the offer and indicated it will not take it to its members.

“Untu has a clear mandate from our constituencies, and the final offer tabled by management remains far from the mandate received from members,” Untu spokesperson Atenkosi Plaatjie said. 

“Untu remains of the view that this is just an extension of the 2022 salary/wage agreement, and accepting such an offer will be detrimental and a financial suicide to our members and Transnet employees at large in such a tough economic climate.” 

Untu has revised its 12% wage increase demand to 10%. It wants a single-year deal, R2,500 housing allowance, R2,500 medical aid allowance and for overtime capping to be removed, among other things. 

“Untu is fully prepared to take to the streets and mobilise our 25,000-plus members to secure a liveable, just and fair wage increment,” Plaatjie said on Thursday. 

Industrial action could disrupt port operations and stall Transnet’s recovery after years of state capture.

Satawu spokesperson Amanda Tshemese said on Thursday: “The three-year wage agreement is an indication of job security to our members and workers. The union has been very vocal on what it stands [for] and believes in, and we have once again stood firm and won for our members and unorganised workers. This is their victory.” 

Tshemese said the rail and ports operator had made it clear that it would consult should there be a need to restructure the entity. “However, we are not yet there. Based on our demands, the union is accepting the final position of Transnet as it is aligned to our members demands.”

mkentanel@businesslive.co.za