One of the container rail lines between Durban and Cato Ridge has been restored, following damage caused by severe floods in KwaZulu-Natal in April, which affected operation at SA's busiest port. Image: Waldo Swiegers/Bloomberg
Transnet employees affiliated with the South African Transport and Allied Workers Union (Satawu) will remain on strike.
The union’s general secretary Jack Mazibuko said Satawu, representing some 21 000 workers, will accept nothing less than above inflation.
According to tradingeconomics.com, South Africa’s annual inflation rate eased to 7.6% in August of 2022, from an over 13-year high of 7.8% in July.
Satawu previously said it would accept nothing less than double-digit increases, but it has since backpedalled saying workers would accept 7.5% and the reinstatement of a protection clause against possible upcoming retrenchment.
Mazibuko said that should Satawu get a 7.5% increase; it would open the door for Transnet’s majority union – United National Transport Union (Untu), to renegotiate the agreement that was signed on Monday.
Transnet on Monday announced that it had reached an agreement with Untu
Year 1: A 6% increase in the basic wage for levels H to L, and 6% on the annual cost-to-company package for level G.
Year 2: A 5.5% increase in the basic wage for levels H to L, and 5.5% on the annual cost-to-company package for level G.
Year 3: A 6% increase in the basic wage for levels H to L, and 6% on the annual cost-to-company package for level G.
Workers would also get medical aid subsidy increases, in line with the basic wage improvements, throughout the agreement from 1 October 2022, and a housing allowance increase which will commence from 2023/24 and 2024/25.
In addition to the 7.5% demand, Satawu is looking to reinstate a “no-retrenchment clause” in a bid to block a possible wave of retrenchments of the parastatal’s engineers in the near future.
Removal of the clause would enable Transnet to restructure its business according to the economic and structural needs of the company, but Satawu argues this would be a setback for workers.
Mazibuko warned that Transnet engineers are at risk of being retrenched.
“They haven’t formally indicated that they want to retrench workers, but certain departments are looking to retrench engineers.
“The main reason they are giving is there are no jobs for people to manufacture and repair trains,” said Mazibuko.
Transnet executives receive cushy salaries from R4.5 million and were also eligible for a 3% bonus.
“We are saying that executive should distribute this 3% among the companies lowest earning employees to bring their salaries up.”
Mazibuko warned that if Transnet didn’t ‘change its ways’ the parastatal would meet the same fate as other doomed state-owned enterprises like SAA and Denel.
“Transnet executives are inexperienced. I would give it two years before that company collapses,” he concluded.
NOW READ: Economic impact of Transnet strike mounting
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