Transnet and unions clash

THREE-YEAR DEAL: WAGE OFFER REJECTED

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State-run ports and logistics group seeks to avert strike threat.

Transnet and its two biggest trade unions are squaring up over demands for wage increases well above inflation over three years, along with a freeze in retrenchments.

The two largest unions - the SA Transport and Allied Workers Union (Satawu) and United National Transport Union (Untu) - have rejected state-run Transnet’s opening bid of CPI-linked increases, with Untu arguing that management rejected CPI-linked increases in 2022 when inflation hit 7.8%, but are in favour of it now that inflation is 3.2%.

In a statement on Wednesday, Transnet said it had tabled a revised three-year offer of CPI plus 1% (4.5%) in the first year, and CPI plus 0.5% (5% increase) in years two and three. The increase applies to salaries and related components such as 13th cheque, pension fund contributions, medical aid subsidies and housing allowances.

This is still well short of what the major trade unions have demanded.