Unions reject Transnet’s latest wage offer, planned strike still on

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An emergency meeting between unions and Transnet has failed to ward off a strike planned for next Monday which will see more than 80% of staff down tools. 

Transnet’s chief operating officer Portia Derby requested the meeting with the leadership of the United National Transport Union (Untu) and the South African Transport and Allied Workers Union (Satawu) to discuss the salary dispute and the pending strike action declared by both unions.

Transnet said it could increase its 1.5% offer to 3%, effective from April 2022. Back pay for the April to September period would be paid in three equal payments between January and March 2023, it said. Untu and Satawu have demanded increases of between 12% and 13.5%.

Satawu’s head of communications Amanda Tshemese told the Mail & Guardian Transnet had reiterated at the meeting that it did not have the funds for a higher offer.  

Untu said in a statement Transnet was still pleading poverty and that the unions had declined the offer and refused to suspend the strike action. 

Transnet reported a net profit of R5-billion for the 2021/2022 financial year, despite ongoing operational issues.

According to the state-owned entity’s 2022 annual financial statements, released in July, its revenue increased by 1.8% to R68.5-billion for the year ended 31 March 2022. The company’s net operating expenses decreased by 5.9%. 

Untu also raised concerns about holding negotiations outside formal structures. 

“Salary negotiation matters must be dealt with within the formal structures in the Bargaining Council and not as bi-lateral meetings,” it said.

“Even after an intervention request from Satawu to minister of finance Enoch Godongwana and minister of public enterprises Pravin Gordhan, no concrete response has been communicated from both departments to stop the strike action,” said Tshemese.Neither department had responded to the M&G’s questions in this regard at the time of publication.

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