Transnet applies for CCMA intervention as unions prepare to strike

National railway company Transnet says it has applied to the Commission for Conciliation, Mediation and Arbitration (CCMA) to mediate over current wage negotiations with the South African Transport and Allied Workers Union (Satawu) and the United National Transport Union (UNTU).

This comes after the two unions, on Monday, rejected the company’s revised offer of:

• A once-off ex gratia payment of R10 000 before tax to be made at the end of April 2023
• A 1.5% increase on guaranteed pay, effective from 1 April 2022
• As a result of its cash position, the amount due from 1 April 2022 to 30 September 2022 will be paid to employees over three months, at the end of January, February and March 2023. Transnet will pay the new salary with the 1.5% increase from the end of October 2022.

In its revised wage offer, the company noted that it will pay the increase on remuneration elements including an annual basic salary or cost to company package, a 13^th cheque based on October’s salary for employees on grade level H to L, overtime, and employer contribution to retirement fund.

It says it believes that its offer is fair and reasonable given current financial and operational challenges and has emphasised that its wage bill currently makes up over 66% of its monthly operating costs. “This is not sustainable, particularly given the current operational and financial performance,” it adds.

Read: Transnet and unions declare wage deadlock, strike looms

It says it has urged unions and workers to accept its offer as “the best possible deal that can be made right now”.

“Management has reemphasised its commitment to save jobs, and the latest offer made, which is a R950 million increase on the current salary bill, does not result in any foreseeable job losses.”

However, Satawu and UNTU rejected the revised salary offer from Transnet and further indicated the intention to embark on a strike.

Satawu noted that it will issue a notice to Transnet to strike from Monday, 10 October, while UNTU says it gave notice to commence with its strike on Thursday, 6 October.

Transnet says it remains optimistic about finding a solution to continue the business of turning the company around for its own benefit and for the South African economy.

Nondumiso Lehutso is a Moneyweb intern.