Transnet SOC Limited and South Africa’s trade union, United National Transport Union (UNTU), reached a three-year wage agreement on 17 October after severe strike actions.
The agreement will be applicable from 1 April 2022 until 31 March 2025, in a process mediated by the Commission for Conciliation, Mediation and Arbitration (CCMA).
“This ends the current industrial action by UNTU members with immediate effect,” said Transnet’s announcement.
The company said its priority 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, includes the following elements:
- 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.
- An increase in the medical aid subsidy, in line with the increases in the basic wage, over the duration of the agreement. The increase on the medical subsidy for the 2022/23 financial year will be implemented from 1 October 2022.
- An increase in the housing allowance commencing from year 2023/24 and 2024/25.
- 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.
