Transnet commits to resolving wage negotiation deadlock

Friday, August 26, 2022

Transnet has committed to resolving the current wage negotiation impasse at the state rail and ports authority.

Transnet and unions have been locked in wage negotiations since May this year and the deadlock has now been referred to the Transnet Bargaining Council for resolution.

“It is unfortunate that the parties could not reach an amicable settlement and that a dispute certificate has now been issued by the Transnet Bargaining Council. Transnet remains committed to continuing engagements with the unions to resolve the dispute and reach an amicable settlement,” a Transnet statement read.

Transnet said it is offering workers the following:

  • An increase of 1.5% on all pensionable elements of remuneration which does not include an increase in medical aid subsidy and housing allowance. The increase will be effective from the 1st of the month following signature of the agreement,
  • No forced retrenchments during the currency of the agreement, but Transnet will reorganise, redeploy and reskill employees who might be affected by positions that no longer exist
  • Implementation of unique and tailored productivity incentive schemes for the bargaining unit employees per operating division, with potential additional earnings of up to 16% of earnings, in addition to the negotiated salary increase. The effective date of this scheme is 1 April 2022.


“While management has revised its initial offer, the unions have not offered a revised proposal. Their position remains unchanged from the previous rounds of wage negotiations, with a demand for a 12% increase on annual guaranteed pay, as well as other demands which add up to a total increase in labour costs of 21%.

“Transnet’s offer, which the company believes is reasonable and fair, takes into account affordability and the company’s current liquidity position. Transnet’s wage bill in the 2021 financial year was 61% of operating expenditure, which is unsustainable.

“The company is implementing various initiatives intended to improve operational and financial performance, and ensure business sustainability,” Transnet said. –