The United National Transport Union (UNTU) expect the Passenger Rail Agency of South Africa (PRASA) to
put a 0% salary increase on the table when salary negotiations for this year’s salary increases of PRASA
employees commence at the PRASA Bargaining Forum.
Steve Harris, General Secretary of UNTU, says PRASA made the dire state of its financial affairs clear when it admitted in Parliament last year that R14 billion was lost due to irregular expenditure.
PRASA, a state-owned enterprise, barely has enough money to continue with its basic operational
requirements and faces a total collapse of services if the situation does not drastically improve.
“It will be very tough negotiations. As a responsible trade union striving to protect the rights of workers, it is unfair to expect PRASA employees to continue to lower they basic living standards and be prepared to increase their productivity to serve the South African public to the best of their ability without a salary increase,” says Harris.
According to Harris workers have had to tighten their belts even more last year due to the never-ending increases of food prices because of the increasing petrol prize, the inflation rate and electricity. “If the petrol price drop, you will never notice a drop-in food prizes. Workers are paying more and more and Government is doing nothing to regulate this,” says Harris.
He believes that PRASA cannot expect UNTU members to pay the prize for its management’s irregular expenditure. UNTU would like to know what legal steps PRASA have taken to recoup the money.
In terms of a collective agreement PRASA must implement its salary increase for workers on 1 April annually.
Harris says UNTU will finalise its mandate with its salary demand to the passenger railway operator by the end of this month.
Dawie Roodt, Chief Economist of the Efficient Group, says a realistic salary increase for 2017 will be 5% considering that decline in the current inflation rate of 6% and the fact that the South African economy did not grow with more than 1%.
“If you look at semi state-owned enterprises like PRASA, their employees already earn between 40% and 80% more than their equivalent in the private sector and their productivity is less. South Africa cannot afford to increase their salaries.
“I suspect that Finance Minister Pravin Gordhan will have no choice but to increase personal tax for the next financial year because the whole public service is bankrupt. The harsh reality is that if you are not one of the few South African with scares skills and the ability to increase productivity, you will need to adjust your living standard to a lower level,” says Roodt.
Dr. Roelof Botha, economic advisor to PricewaterhouseCoopers, says he believes given the fact that the demand for jobs in South Africa totally outstrips the supply of it, that a salary increase of between 4% and 6% will be in the order of the day.
“Looking at PRASA, the aim of workers should be to keep their jobs and to demand proper management of state funds instead of demanding salary increases,” he says.
For more information phone Harris on 082 566 5516.
Issued on behalf of UNTU by Sonja Carstens, Media and Liaison Officer. For UNTU Press Releases e-mail sonja@untu.co.za or phone 082 463 6806.
