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JOHANNESBURG - The United National Transport Union (UNTU) and SATAWU on Monday submitted their consolidated wage demand to Transnet for a 12 percent salary increase for the next three years.
UNTU wants a three-year multi-term agreement with an undertaking from Transnet that there will be no forced retrenchments during this period.
Steve Harris, General Secretary of UNTU in a statement said Organised Labour believes this was a very realistic demand given the current struggling economic climate South Africans were finding themselves in with prices on all goods soaring daily.
Harris, said the demand was also justifiable given the fact that Transnet announced on October 30 that Transnet’s profits has soared to R37.1 billion, that’s thanks to the fact that the company gained market share in general freight cargo and coal volumes. Transnet’s revenue rose by 13.8%.
“Labour is demanding that Transnet increase its contribution to employee’s medical aid and to the housing allowance to R1 790 for 2018/2019, R2 500 for 2019/2020 and R3 500 for 2020/2021. All other allowances paid by Transnet must increase by 12% each year for the next three years,” said Harris.
He further stated that Labour wanted the Funeral Cover that Transnet Employees enjoy, to continue after the retirement of employees, but to the cost of Transnet and also Transnet to increase its current contribution to employee’s medical aid after retirement from the current R213 to R1 500 2018/2019 and thereafter with 12% each year.

“Labour wants all its demands to be implemented from April 1, 2018 and that the agreement must be signed before the end of the year to ensure that employees don’t have to wait for backpay,” said Harris.
Meanwhile, Tumelo Mokoena, Transnet General Manager Human Capital said that Labours demand was very high in their view. “We are still going to cost it.”
Mokoena said that Transnet was considering the settlement patterns over the past two years, the cost of living and the sustainability of the wage demand. Transnet has agreed to a no retrenchment clause with Labour over the past six years.
“Our summary is that the demands are a very taxing list of issues. We will go and cost it and come back to you,” said Mokoena.
Transnet agrees that the wage increase must be implemented no later than April 1, 2018.
The negotiations are scheduled to continue November 27 at the Transnet Bargaining Council.