Transnet ups wage offer to avoid more operational interruptions

State-run ports, rail and pipelines group Transnet has upped its wage offer to workers to try to avoid industrial action and disruptions to its operations.

On Tuesday, Transnet effectively doubled its wage offer from an increase of 1.5% to 3%.

Read: Transnet applies for CCMA intervention as unions prepare to strike

This follows the South African Transport Allied Workers’ Union (Satawu) and United National Transport Union’s (UNTU) notice to embark on a strike for a better wage.

In a statement issued on Wednesday morning, Transnet noted that it tabled an improved offer with the leadership of its labour unions at a meeting held on Tuesday evening.

Transnet says it will formalise the offer at the Bargaining Council on Wednesday (5 October) with UNTU and on Friday, 7 October, with Satawu.

The group’s revised wage offer includes:

• A 3% increase to guaranteed pay, with effect from 1 April 2022
• Salaries will be paid with the 3% increase from the end of October 2022
• The back-pay for the April to September 2022 period will be made in three equal amounts beginning January, February, and March 2023
• A once-off ex gratia payment to each employee amounting to R7 600 before tax to be paid at the end of the financial year (which will help Transnet raise the money over the remaining six months of the year from its operations)

It says the revised offer further increases its fixed salary base and subsequently its operating costs.

Wage bill

“Transnet’s wage bill already accounts for 66% of the company’s monthly operating costs…  Given the current operational and financial performance of the business, it would be ill-considered to offer unsustainable wage increases,” it adds.

“However, given the role that Transnet plays in the economy, it is equally crucial that everything possible is done to ensure that a strike is averted.”

The latest offer comes after Transnet’s initial offer of a 1.5% salary increase was rejected by the unions on Monday.

UNTU notes in a statement issued on Wednesday that initially the meeting with Transnet’s management began with the company “pleading poverty by reiterating the reasons for their latter revised salary offer”. It says Transnet indicated that it could not revise the offer.

The union says it engaged with Transnet’s management for about three hours (on Tuesday evening) which then resulted in a revised offer and a request for the union to suspend its strike set for Thursday 6 October.

However, UNTU says it refused to suspend the strike.

“UNTU’s response was that such a revised salary increase offer must be made formally within the confines of the existing negotiation structure in the Bargaining Council and that UNTU’s full salary negotiation team must be present after which the revised salary offer will be shared with membership for mandating purposes,” the union notes.

It says engagements ended with the expectation to set a meeting for Wednesday (5 October) or Friday (7 October) for Transnet to provide and discuss the revised salary offer with its salary negotiation team.

Transnet says it remains confident that a resolution can be reached with its revised offer. “This will allow the organisation to focus its full attention on improving operational performance and delivering value to our stakeholders.”

Satawu is yet to comment on the matter.

Nondumiso Lehutso is a Moneyweb intern.