Transnet, Untu reach agreement following wage strike

Transnet says it has reached an agreement with the company’s majority union – United National Transport Union (Untu) – following a strike by the union’s workers.

As of 30 September, Untu had 24,992 members, which accounted for 53.9% of bargaining unit employees at Transnet.

According to a statement issued by Transnet, the company and the union reached a three-year wage agreement on Monday for the period 1 April 2022 to 31 March 2025.

The process was mediated by the Commission for Conciliation, Mediation and Arbitration (CCMA).

“The company’s priority in the immediate is clearing any backlogs across the port and rail system – prioritising urgent and time-sensitive cargo, and implementing recovery plans, working with industry and customers.”

“The agreement which applies to all bargaining unit employees including those who are not members of Untu, is effective from 1 April 2022, and will be implemented from 1 October 2022.”

Conditions of agreement:

Year 1: A 6.0% increase in the basic wage for levels H to L, and 6.0% 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 6.0% increase in the basic wage for levels H to L, and 6.0% on the annual cost-to-company package for level G.

The company said there would also be in an increase in the medical aid subsidy, in line with the increases in the basic wage, over the duration of the agreement from 1 October 2022.

An increase in the housing allowance will commence from year 2023/24 and 2024/25.

According to Transnet, the back-pay for the period 1 April to 30 September 2022 will be paid in two tranches – three months’ back-pay on 15 November 2022, and three months’ back-pay on 16 January 2023.

Transnet said it appreciated the support that has been received from all stakeholders, which include the  CCMA, government, customers and industry at large.

ALSO READ: CCMA proposes new settlement proposal to labour unions, Transnet to end crippling strike

Compiled by Siphumelele Khumalo