The United National Transport Union (UNTU) have served a 48 Hour Notice on Transnet indicating UNTUs intention to embark on Protected Strike / Protected Industrial Action as from, Thursday, 06 October 2022 at 00H01am.
After delaying the salary negotiation process for months, and even more months of negotiation, Transnet has still not made a reasonable offer in the salary negotiation process for its employees. The Salary increase negotiations was supposed to start during the latter part of February 2022 / early March 2022, however, Transnet constantly delayed the negotiation process with the actual negotiation process engagements only kicking off on 31 May 2022 and 01 Jun 2022, two months after the salary increases should have been implemented. Transnet opened their Salary negotiation proposals at 1% across the board (ATB) for all employees, none of the other proposals from Labour was considered. These proposals included, amongst others, increased housing allowance, shift allowance, medical aid allowance and no retrenchments.
Understanding the crucial need for stability in Transnet, Labour proposed a three-year salary increase agreement to ensure that the stability that Transnet requires is achieved to enable the implementation of various projects that Transnet intended to undertake during the short and medium term. After three rounds of negotiations, Transnet barely changed their proposals and only moved slightly on non-significant allowances such as shift allowance and standby allowances but maintained their 1% across the board (ATB) increase. The proposals from Transnet were completely silent on some of the most important aspects such as a CPI related increase, increase in medical aid allowance and increase in housing allowances. Subsequently a deadlock was reached by the Parties, and a dispute was declared. After two days of conciliation, Transnet proposed their final offer which again did not address the material aspects of a CPI related increase across the board, medical aid allowance increase and housing allowance increase. A certificate of non-resolution was issued on 25 August 2022.
During the 30 days following immediately after the issuing of the certificate of non-resolution, Transnet did not approach Labour with any revised offer. Just another example of Transnet delaying the salary negotiation process and their lack of commitment to find an amicable solution! After UNTU threatened to give notice of pending industrial action as per the circular letter that was issued on 28 September 2022 by UNTU, Transnet requested a meeting with Labour and eventually provided Labour with a revised salary proposal on 03 Oct 2022, which in summary is as follows:
An increase of 1.5% on some of the elements of remuneration effective from 01 Oct 2022
Backpay for the period 01 April 2022 to 30 September 2022 which will only be paid in Jan 2023 onwards in three equal “instalments” at the end of Jan 2023, end of Feb 2023 and end of Mar 2023 and such would be pro-rated for employees that started after 01 April 2022
Ex-gratia lumpsum at the end of April 2023 (which is in the next financial year) of R10 000 before tax.
1 year agreement (counterproductive considering the amount of stability required in Transnet to achieve the short- and medium-term goals….)
We have no other choice but to reject Transnet’s offer. It is an insult to our members who have put everything on the line to help get this Company back on track. Our members, and the Transnet employees at large, are expected to bear the brunt of years of historic mismanagement and corruption that occurred during state capture. This is unacceptable! Our members and the rest of the Transnet employees deserve better!
Embarking on protected industrial action is always a last resort, however, it is a right that UNTU Members have decided to exercise due to the fact that the salary increase offer that Transnet has provided is completely misaligned with our members needs and the rising cost of living. We remain open and committed to the Section 150 CCMA facilitation process as proposed since this is a matter of national public interest. The disruption that will occur if our people have to take to the streets on the daily functioning of the economy would be severe. Transnet and its shareholders (who is Government by the way) must provide a salary increase offer that is aligned with the increased cost of living, cost of housing, medical costs, housing and, of course, CPI that is currently running at 7.6%.
It is time for Government to step in and step up to save probably one of the last SOEs that can possibly be saved, to help our people, to save the jobs of tens of thousands of people and to prevent our people from being even more impoverished than what we already are!
Is our Government going to step in and step up? Or are they going to continue sitting on the side-lines…..?
Issued on behalf of UNTU by General Secretary Cobus van Vuuren. For UNTU press statements phone 060 758 6612 or e-mail cobus@untu.co.za
