State-run ports, rail and pipelines group Transnet has upped its wage offer to staff to attempt to avoid industrial motion and disruptions to its operations.
On Tuesday, Transnet successfully doubled its wage offer from a rise of 1.5% to 3%.
Read: Transnet applies for CCMA intervention as unions put together to strike
This follows the South African Transport Allied Workers’ Union (Satawu) and United National Transport Union’s (UNTU) discover to embark on a strike for a greater wages.
In an announcement issued on Wednesday morning, Transnet famous that it tabled an improved offer with the management of its labour unions at a gathering held on Tuesday night.
Transnet says it is going to formalise the offer on the Bargaining Council on Wednesday (5 October) with UNTU and on Friday, 7 October, with Satawu.
The group’s revised wage offer contains:
- A 3% improve to assured pay, with impact from 1 April 2022
- Salaries can be paid with the three% improve from the top of October 2022
- The back-pay for the April to September 2022 interval can be made in three equal quantities starting January, February, and March 2023
- A once-off ex gratia cost to every worker amounting to R7 600 earlier than tax to be paid on the finish of the monetary 12 months (which can assist Transnet elevate the cash over the remaining six months of the 12 months from its operations)
It says the revised offer additional will increase its fastened wage base and subsequently its working prices.
Wage invoice
“Transnet’s wage bill already accounts for 66% of the company’s monthly operating costs… Given the current operational and financial performance of the business, it would be ill-considered to offer unsustainable wage increases,” it provides.
“However, given the role that Transnet plays in the economy, it is equally crucial that everything possible is done to ensure that a strike is averted.”
The newest offer comes after Transnet’s preliminary offer of a 1.5% wage improve was rejected by the unions on Monday.
Read:
A story of two consultants: First Bain, now McKinsey, in state seize dock
Transnet and unions declare wage impasse, strike looms
Transnet sees inexperienced shoots regardless of one other difficult 12 months
UNTU notes in an announcement issued on Wednesday that originally the assembly with Transnet’s administration started with the corporate “pleading poverty by reiterating the reasons for their latter revised salary offer”. It says Transnet indicated that it couldn’t revise the offer.
The union says it engaged with Transnet’s administration for about three hours (on Tuesday night) which then resulted in a revised offer and a request for the union to droop its strike set for Thursday 6 October.
However, UNTU says it refused to droop the strike.
“UNTU’s response was that such a revised salary increase offer must be made formally within the confines of the existing negotiation structure in the Bargaining Council and that UNTU’s full salary negotiation team must be present after which the revised salary offer will be shared with membership for mandating purposes,” the union notes.
It says engagements ended with the expectation to set a gathering for Wednesday (5 October) or Friday (7 October) for Transnet to present and focus on the revised wage offer with its wage negotiation group.
Transnet says it stays assured {that a} decision could be reached with its revised offer. “This will allow the organisation to focus its full attention on improving operational performance and delivering value to our stakeholders.”
Satawu is but to touch upon the matter.
Nondumiso Lehutso is a Moneyweb intern.
