Transnet unable to meet unions’ wage demands

Railway company Transnet said it was not in a position to meet the demands made by unions in the Bargaining Council on wage hike negotiations. Photo supplied.

Railway company Transnet said it was not in a position to meet the demands made by unions in the Bargaining Council on wage hike negotiations. Photo supplied.

Published Apr 23, 2021

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Railway company Transnet said it was not in a position to meet the demands made by unions in the Bargaining Council on wage hike negotiations.

“The difficult economic climate and the resultant decline in the operational and financial performance of the company mean Transnet is not in a position to accede to the demands made by the unions in the Bargaining Council. In the current context, Transnet believes its offer is reasonable and realistic," the company said in a statement.

Transnet has offered a 3% wage hike – a figure that the United National Transport Union (UNTU) and the South African Transport and Allied Workers Union (SATAWU) rejected.

The unions said Transnet’s proposed increase was “so bad that organised labour can’t even present it to their constituents to obtain a revised mandate.”

Transnet said its results showed a decline in transported volumes.

“It is important to note that for the nine months to December 2020, Transnet reported a decline in volumes transported, resulting in lower revenues – primarily as a result of the economic downturn. The company’s priority focus is to ensure improvements in operational and financial performance, to get the company back on a positive growth path, and to sustain jobs,” it said.

According to Transnet, the next step is for the Bargaining Council to schedule a conciliation process in terms of the Labour Relations Act.

“Transnet will continue to address this matter in the best interests of the company, its shareholder, employees, customers, and the economy,” the company said.

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labour dispute