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IOL News
6 days ago
- Business
- IOL News
Trade unions criticise lenient sentence for businessman involved in Transnet fraud
Unions criticise Transnet fraud sentence Image: Independent Newspapers Archives Trade unions have criticised the five-year effective sentence handed down to businessman Yakub Ahmed Suleman Bhikhu for defrauding Transnet of R66 million, saying the punishment does not reflect the severity of the crime or the damage caused to workers and the economy. The Federation of Unions of South Africa (FEDUSA) said it 'fully supports and endorses' the position of its affiliate, the United National Transport Union (UNTU), which earlier raised concerns over the sentence. 'Like UNTU, FEDUSA is deeply concerned that the effective five-year sentence, following a conviction in one of South Africa's most egregious State Capture-related scandals, does not reflect the gravity of the crime nor the long-term damage inflicted on workers, the economy, and the integrity of public institutions,' the federation said in a statement. Bhikhu and his company, Homix (Pty) Ltd, were convicted by the Pretoria Regional Court on 81 counts, including fraud, forgery, uttering, money laundering, and contravening the Tax Administration Act. The offences were committed between 2012 and 2015 and caused a loss of about R66 million to Transnet. Bhikhu pleaded guilty and was sentenced to 10 years in prison, with five years suspended, effectively serving five years behind bars. He was also ordered to repay R300,000 to Transnet, while Homix received a suspended fine of R500,000. However, FEDUSA said the sentence 'sends the wrong message' and risks emboldening other looters. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading 'It undermines confidence in our democratic institutions, particularly the National Prosecuting Authority and the judiciary, whose mandate is to protect the public interest and ensure accountability at all levels of society,' the federation said. Bhikhu was implicated in evidence led before the State Capture Commission. He evaded arrest for six years before being apprehended at the border while trying to enter Botswana. He has been in custody since. The NPA's Investigating Directorate Against Corruption (IDAC) said it welcomed the conviction and sentencing, adding that it was the result of collaboration among law enforcement partners. But FEDUSA insisted that 'until the full weight of the law is brought to bear on those who defraud the state, economic justice will remain elusive'. THE MERCURY
IOL News
17-06-2025
- Business
- IOL News
Transnet averts potential strike after reaching three-year wage agreement with workers unions
Transnet and its majority union United National Transport Union (UNTU) sign a wage agreement after a lengthy process with the intervention of the Commission for Conciliation, Mediation and Arbitration (CCMA). Image: Leon Lestrade/ Independent Newspapers Transnet has signed a three-year wage agreement with its majorityunion, the United National Transport Union (UNTU), following a protracted negotiation process that required intervention from the Commission for Conciliation, Mediation and Arbitration (CCMA). In a statement on Thursday, Transnet said that the wage agreement would see an increment of 6% for the 2025/2026, 2026/2027, and 2027/2028 financial years. Transnet stated that this above-inflation agreement corresponds to an overall wage increase of 18% across the three years, encompassing increases to basic salaries and additional components, such as the 13th cheque, pension fund contributions, medical aid subsidies, and housing allowances. 'The finalisation of the three-year wage agreement provides labour stability and will enable the company to focus on its immediate strategic priorities of improving operational and financial performance, while positioning the organisation for future growth, thereby ensuring job security and economic growth,' Transnet said. UNTU general secretary, Cobus van Vuuren, hailed the signing as a pivotal moment following a challenging negotiation period. 'The agreement was signed between the parties on Thursday evening, 12 June 2025, following engagements between UNTU and Transnet this week,' he said. 'UNTU is confident that this agreement is fully aligned with the overwhelming mandate received from our constituencies, which have mandated us to sign the CCMA's facilitator's proposal following the S150 process by two senior Commissioners.' UNTU represents more than 26 000 workers at Transnet and had threatened to issue the State-owned freight and logistics firm with a 48-hour notice for a strike if negotiations deadlocked. Van Vuuren emphasised that this agreement not only represented a notable salary increment but also reinforced job security—one of UNTU's primary demands throughout the negotiation process. 'As UNTU committed, we also secured the back payment for the increased retrospective from 01 April 2025, as our members have made great financial sacrifices during this period, as UNTU continued the fight for a better salary increase and, most importantly, job security. UNTU is the majority union in Transnet; therefore, this agreement will be applicable to all bargaining unit employees,' he said. 'The three-year agreement also ensures much-needed labour stability during a critical period as Transnet works to rebuild its operations, restore service reliability, and regain stakeholder confidence. 'As the majority union representing the voices of more than 26 000 employees at Transnet, UNTU confirms that this newly signed agreement supersedes the previous agreement signed between Transnet and the minority union, Satawu.' Transnet also signed the same wage agreement with its other recognised labour union, the South African Transport and Allied Workers' Union (Satawu). Satawu general secretary, Jack Mazibuko, said the union had proposed an alternative wording for the retrenchment clause committing Transnet to no mandatory retrenchments during the currency of the wage agreement. 'Äccordingly, the new retrenchment clause as contained in the employer's final wage offer reads as follows: 1. Transnet commits that there will be no mandatory retrenchments during the currency of the wage agreement. 2. However, should it be necessary to restructure any areas of its business due to operations. economic and/or organisation restructuring reasons, the following process shall be followed: a) The employer will comply with the provisions of its existing recognition agreement and prevailing legislation b) The employer will establish a multi-disciplinary committee, inclusing labour, to assess the people impact of all restructuting initiatives across the business with the objective to preserve job security for all employees. c) The committee will explore opportunities for retirement, redeployment, reskilling and restructing will be explored as alternatives to ensure that there will be no mandatory retrenchments.' BUSINESS REPORT Transnet and its majority union United National Transport Union (UNTU) sign a wage agreement after a lengthy process with the intervention of the Commission for Conciliation, Mediation and Arbitration (CCMA). Image: Leon Lestrade/ Independent Newspapers
News24
13-06-2025
- Business
- News24
Transnet averts strike as unions accept pay deal
South Africa's state-owned ports and freight-rail company reached a pay deal with its two recognised labour unions, averting a strike that threatened to disrupt mineral and agricultural exports. The agreement, which followed an arbitration process led by the Commission for Conciliation, Mediation and Arbitration, provides for 6% annual increases for three years, including the current financial year, Transnet said in a statement. The United National Transport Union (UNTU), which represents more than half of of Transnet's 46 000 employees, had previously rejected a wage increase offer of 6% annually in the first two years starting April 1 and 5.5% in the third year. 'The finalisation of the three-year wage agreement provides labour stability and will enable the company to focus on its immediate strategic priorities of improving operational and financial performance,' Transnet said in the statement. The deal includes increases to basic salary, pension fund contributions, medical aid subsidies and housing allowances, the company said. Both unions — UNTU and the South African Transport and Allied Workers' Union — have accepted the offer, it said. The above-inflation pay increase will put further strain on Transnet's finances. Moody's Ratings has placed the company assessment on review, warning that it will run out of money for operations and debt-servicing within three months unless it gets a government bailout. South Africa's government said this week it will give Transnet additional guarantees to settle all its debt that falls due and execute its capital-investment program. Transport Minister Barbara Creecy announced the approval of a R51 billion guarantee facility for Transnet last month and the process of giving it additional support will be finalized by July 25, according to the Department of Transport. The company's five-year corporate plan shows it needs to repay R99.6 billion.
Bloomberg
28-05-2025
- Business
- Bloomberg
South African Union Sets Deadline for Passenger Rail Pay Talks
South Africa's United National Transport Union threatened industrial action unless wage arbitration with the country's passenger rail agency succeeds next month. UNTU's 2025/26 pay talks with the state-owned Passenger Rail Agency of South Africa moved to the third-party Commission for Conciliation, Mediation and Arbitration in April, but the process has not made any progress, the union said in a statement Wednesday posted on X.
IOL News
26-05-2025
- Business
- IOL News
UNTU prepares for possible strike as Transnet wage negotiations reach deadlock
Transnet's workers unions United National Transport Union (UNTU) confirmed on Friday that the three-day S150 Commission for Conciliation, Mediation and Arbitration (CCMA) process on Transnet salary/wage 2025/26 impasse remains in deadlock after three days. Image: Leon Lestrade/ Independent Newspapers Transnet's ongoing wage negotiations have reached an impasse, confirming fears of looming industrial action by workers as the United National Transport Union (UNTU) made a clear statement on Friday. After three days of mediation by the Commission for Conciliation, Mediation and Arbitration (CCMA) through the section 150 of the Labour Relations Act, UNTU reported that no progress had been made, compelling them to consider striking if their demands remained unmet. On Thursday, UNTU completed a ballot process with its members that disclosed a consensus to mobilise for industrial action should the wage negotiations fail. The union said the CCMA has committed to present a revised salary/wage offer by close of business on Monday. 'If no revised offer is forthcoming, UNTU will issue Transnet with a 48-hour notice of industrial action,' it said in a statement. UNTU general secretary, Cobus van Vuuren, said the majority of ballots cast by the majority union's members was in favour of taking to the streets to demand a wage increment that reflected the deepening economic crisis facing Transnet employees and job security. Van Vuuren said the three-day S150 CCMA intervention facilitated by two senior commissioners failed to break the Transnet salary/wage 2025/26 impasse; therefore, the status quo remained in terms of this deadlock. 'The proceedings spanning over three days concluded on Thursday, without the parties reaching consensus on a revised salary/wage increase offer. UNTU 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,' he said. UNTU is demanding a 10% wage increase for 2025/26, a R2 500 housing allowance, R2 500 medical aid allowance, and the removal of a cap on overtime from Transnet. The union has also rejected a proposed wage increase of 6% over two years and 5.5% in the third year. Van Vuuren said that throughout the process, UNTU tabled a variety of salary/wage proposals for Transnet's consideration. 'We are confident we are in line with the economic and financial pressures facing our members, with a high emphasis on job security while at the same time paying due cognisance to the challenges Transnet faces. The proposals, which UNTU presented, cannot be disclosed at this time due to the confidential nature of the S150 process,' he said. '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.' Van Vuuren said that the resolution of the deadlock now rested with the CCMA, which he said has committed to present a revised salary/wage offer by close of business on Monday. 'Should no revised offer be forthcoming, UNTU will issue Transnet with a 48-hour notice of industrial action. This could potentially result in industrial action commencing on Thursday, 22 May 2025, in line with the overwhelming mandate secured from its members,' he said. 'UNTU has made the necessary logistical preparations to ensure our readiness for industrial action. If a revised offer is received, UNTU will initiate a structured mandating process to determine if our members accept or reject the tabled revised salary/wage offer.' The Federation of Unions of South Africa (Fedusa) has backed UNTU as its affiliate in the wage negotiations with Transnet. 'Should the intervention by the CCMA fail and UNTU members find themselves compelled to embark on industrial action to secure fair wages, Fedusa will support them,' said the federation.
