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The Citizen
21-05-2025
- Business
- The Citizen
Are threats against Transnet over? CCMA sends revised offer to halt strike
The warning raises the question of whether Transnet can afford salary increases for more than 46,000 employees There might be light at the end of the tunnel in the wage negotiations deadlock between Transnet and the United National Transport Union (Untu), as a revised offer has been put on the table. The Union representing the majority of Transnet workers has stated multiple times that it would not mind bringing the already-struggling entity to its knees if its members do not receive the salary increase they deserve. Untu had promised that its members would down tools on Thursday if the Commission for Conciliation, Mediation and Arbitration (CCMA) had not sent a revised salary offer. CCMA delivered the revised offer on Tuesday, instead of Monday, as the union had requested. ALSO READ: Transnet faces standstill on Thursday as Untu demands revised offer Offer delivered by Transnet The cost of living is high for the middle and lower classes of South Africa, and salary increases are justifiable. However, some companies, such as Transnet, are already struggling to maintain operations. Are salary increases that match the cost of living possible? Transnet offered a salary increase of 6% this year, 6% in 2026, and 5.5% in 2027. Untu is demanding a 10% wage increase, as well as housing and medical subsidies. The union representing the minority of Transnet workers, the South African Transport and Allied Workers' Union (Satawu) accepted the offer by the cash-strapped entity. The entity previously stated that the increase is effective as of 1 April 2025, and since Untu did not accept the offer, its members were not eligible for the increase. Offer put on the table by CCMA The revised offer made by CCMA, following the facilitation of the S150 process between the entity and Untu, is for the next three years. 'The proposed agreement will apply to all bargaining unit employees as defined in the Transnet Bargaining Constitution,' said Untu spokesperson, Atenkosi Plaatjie. The offer is a three-year agreement that will commence on 1 April 2025, and will end on 31 March 2028. Each year, all Transnet employees will receive a 6% increase. Plaajie said it is now up to Untu members to either accept or reject the offer made by the CCMA. If the majority of the members accept the offer, the leaders will sign the agreement, which will be binding for all employees. ALSO READ: S&P places Transnet on 'credit watch' What about the strike? She added that, should the majority of the members reject the offer, the leaders will issue a strike notice to Transnet, as previously mandated by their members through a balloting process. 'Employees in the Bargaining Unit who had not received the wage adjustment on 1 April 2025, will receive such adjustment from the June 2025 pay-month, backdated to 1 April 2025. 'The modus of calculation and payment period must be determined by agreement between the parties, similar to the previous wage agreement.' Transnet also committed to no mandatory retrenchments over the three years outlined in the tabled proposal. 'The Parties must revert to the Commissioners by 10 June 2025,' added Plaajie. Will government bailout Transnet? Moody's Ratings has warned that the state-owned logistics company, Transnet, could run out of money in the next three warning raises the question of whether Transnet can afford salary increases for more than 46,000 employees Moody's provides data, intelligence, and analytical tools to help business and financial leaders make informed decisions. The warning that Transnet could run out of money within the next three months could intensify pressure on the government to initiate a financial rescue. The ratings agency believes Transnet needs further government support to refinance upcoming debt maturities and secure funds for its expanded capital expenditure programme. NOW READ: SA's poor service delivery linked to almost R500 billion spent on SOE bailouts
The Citizen
19-05-2025
- Business
- The Citizen
Transnet faces standstill on Thursday as Untu demands revised offer
Untu said that if no revised offer is forthcoming, it will serve Transnet with a 48-hour notice of industrial action. The United National Transport Union (Untu) is all ears for a revised offer from the Commission for Conciliation, Mediation and Arbitration (CCMA), following yet another unsuccessful round of wage negotiations with Transnet. The union had requested a 10% wage increase, as well as housing and medical subsidies, from the struggling state-owned logistics company. However, Transnet had only offered 6% this year, 6% next year, and 5.5% in 2027. Untu has been threatening Transnet with a strike that could cost the company billions in rail operations. The union represents more than half of its 46 000-strong workforce. ALSO READ: Untu makes one last attempt to reach a wage deal with Transnet before major strike Untu gives Transnet several options The CCMA sent two senior commissioners to intervene in the section 150 (S150) conciliation process between Untu and Transnet. The Untu spokesperson, Atenkosi Plaatjie, stated that the union presented various wage proposals during this round of negotiations for Transnet's consideration. It believes these proposals were in line with the economic and financial pressures facing its members, with a high emphasis on job security, while at the same time taking due cognisance of the challenges Transnet faces. At the moment, the union cannot disclose further details of the proposals due to the confidential nature of the S150 CCMA-facilitated process. 'These proposals however prioritised labour stability, job security and the sustainability of Transnet, we had hoped that Transnet and its mandate-givers would seriously consider these proposals, particularly given the potential economic impact of industrial action and the value of securing a longer – term agreement securing labour peace during this critical time in Transnet's turnaround into a sustainable self-funded entity,' she added. Untu waiting for CCMA Plaatjie said the union participated in the S150 process in good faith, fully committed to securing a fair and sustainable outcome amid the rising cost of living and the ongoing operational and structural challenges facing Transnet. 'The resolution of the deadlock now rests with the CCMA, which has committed to present a revised salary/wage offer by close of business on Monday, 19 May 2025. She added that, should no revised offer be forthcoming, the union will issue Transnet with a 48-hour notice of industrial action. ALSO READ: Transnet and trade unions square up over wage demands Strike on Thursday She said after issuing Transnet with a notice, the strike could commence on Thursday, with overwhelming support from its members. 'Untu has made the necessary logistical preparations to ensure our readiness for industrial action.' However, should a revised offer be received by close of business Monday, the union said it will initiate a structured process to determine whether our members accept or reject the tabled revised salary and wage offer. 'Untu will announce the way forward to the media in due course.' CCMA intervention 'The CCMA Section 150 (S150) process is a legal framework within the South African Labour Relations Act (LRA) that allows the CCMA to appoint a commissioner to assist in resolving industrial disputes, potentially in the public interest. 'This intervention can be initiated when the parties to a dispute agree to it and understand that it suspends any right to strike.' Untu is the only union that has not accepted the proposed offer by Transnet. Whereas, the South African Transport and Allied Workers' Union (Satawu) has accepted the offer. Transnet, which is already struggling, previously said it is unable to legally extend the increase to Untu members. Satawu members were eligible for the increase effective 1 April 2025. 'Until Untu and Transnet conclude a collective agreement on wages and conditions of employment, Untu members will not receive a wage increase or any increase to medical subsidy, the housing allowance, pension fund contributions and other associated benefits.' NOW READ: Transnet executives to repay millions in irregular contract payments
