Transnet on edge as union refuses to back down on wage demands

The union has rejected Transnet’s final 2025/26 wage offer of 6%, 6% and 5.5%, and declared a dispute

- YOGASHEN PILLAY

STATE-OWNED logistics firm Transnet remains under threat of a massive industrial action as wage negotiations with the trade union representing more than 20 000 workers have deadlock in spite of intervention by the Commission for Conciliation, Mediation and Arbitration (CCMA).

The United National Transport Union (UNTU) said on Friday that it was currently conducting a balloting process to get consensus on industrial action, which could cripple the importation and exportation of goods and damage economic activity.

Transnet is the largest and most crucial part of the freight logistics chain that delivers goods through its ports, pipelines, rail, and freight divisions.

The union has rejected Transnet’s final 2025/26 three-year wage offer of 6%, 6% and 5.5%, and indicated that it would not seek an additional mandate from its members while the minority union has accepted the offer.

UNTU's revised wage demand has remained unchanged and is calling for a 10% across the board increase and a non-retrenchment clause for the duration of the three-year agreement.