Latest news with #S150
IOL News
17-06-2025
- Business
- IOL News
Transnet averts potential strike after reaching three-year wage agreement with workers unions
Transnet and its majority union United National Transport Union (UNTU) sign a wage agreement after a lengthy process with the intervention of the Commission for Conciliation, Mediation and Arbitration (CCMA). Image: Leon Lestrade/ Independent Newspapers Transnet has signed a three-year wage agreement with its majorityunion, the United National Transport Union (UNTU), following a protracted negotiation process that required intervention from the Commission for Conciliation, Mediation and Arbitration (CCMA). In a statement on Thursday, Transnet said that the wage agreement would see an increment of 6% for the 2025/2026, 2026/2027, and 2027/2028 financial years. Transnet stated that this above-inflation agreement corresponds to an overall wage increase of 18% across the three years, encompassing increases to basic salaries and additional components, such as the 13th cheque, pension fund contributions, medical aid subsidies, and housing allowances. 'The finalisation of the three-year wage agreement provides labour stability and will enable the company to focus on its immediate strategic priorities of improving operational and financial performance, while positioning the organisation for future growth, thereby ensuring job security and economic growth,' Transnet said. UNTU general secretary, Cobus van Vuuren, hailed the signing as a pivotal moment following a challenging negotiation period. 'The agreement was signed between the parties on Thursday evening, 12 June 2025, following engagements between UNTU and Transnet this week,' he said. 'UNTU is confident that this agreement is fully aligned with the overwhelming mandate received from our constituencies, which have mandated us to sign the CCMA's facilitator's proposal following the S150 process by two senior Commissioners.' UNTU represents more than 26 000 workers at Transnet and had threatened to issue the State-owned freight and logistics firm with a 48-hour notice for a strike if negotiations deadlocked. Van Vuuren emphasised that this agreement not only represented a notable salary increment but also reinforced job security—one of UNTU's primary demands throughout the negotiation process. 'As UNTU committed, we also secured the back payment for the increased retrospective from 01 April 2025, as our members have made great financial sacrifices during this period, as UNTU continued the fight for a better salary increase and, most importantly, job security. UNTU is the majority union in Transnet; therefore, this agreement will be applicable to all bargaining unit employees,' he said. 'The three-year agreement also ensures much-needed labour stability during a critical period as Transnet works to rebuild its operations, restore service reliability, and regain stakeholder confidence. 'As the majority union representing the voices of more than 26 000 employees at Transnet, UNTU confirms that this newly signed agreement supersedes the previous agreement signed between Transnet and the minority union, Satawu.' Transnet also signed the same wage agreement with its other recognised labour union, the South African Transport and Allied Workers' Union (Satawu). Satawu general secretary, Jack Mazibuko, said the union had proposed an alternative wording for the retrenchment clause committing Transnet to no mandatory retrenchments during the currency of the wage agreement. 'Äccordingly, the new retrenchment clause as contained in the employer's final wage offer reads as follows: 1. Transnet commits that there will be no mandatory retrenchments during the currency of the wage agreement. 2. However, should it be necessary to restructure any areas of its business due to operations. economic and/or organisation restructuring reasons, the following process shall be followed: a) The employer will comply with the provisions of its existing recognition agreement and prevailing legislation b) The employer will establish a multi-disciplinary committee, inclusing labour, to assess the people impact of all restructuting initiatives across the business with the objective to preserve job security for all employees. c) The committee will explore opportunities for retirement, redeployment, reskilling and restructing will be explored as alternatives to ensure that there will be no mandatory retrenchments.' BUSINESS REPORT Transnet and its majority union United National Transport Union (UNTU) sign a wage agreement after a lengthy process with the intervention of the Commission for Conciliation, Mediation and Arbitration (CCMA). Image: Leon Lestrade/ Independent Newspapers
IOL News
26-05-2025
- Business
- IOL News
UNTU prepares for possible strike as Transnet wage negotiations reach deadlock
Transnet's workers unions United National Transport Union (UNTU) confirmed on Friday that the three-day S150 Commission for Conciliation, Mediation and Arbitration (CCMA) process on Transnet salary/wage 2025/26 impasse remains in deadlock after three days. Image: Leon Lestrade/ Independent Newspapers Transnet's ongoing wage negotiations have reached an impasse, confirming fears of looming industrial action by workers as the United National Transport Union (UNTU) made a clear statement on Friday. After three days of mediation by the Commission for Conciliation, Mediation and Arbitration (CCMA) through the section 150 of the Labour Relations Act, UNTU reported that no progress had been made, compelling them to consider striking if their demands remained unmet. On Thursday, UNTU completed a ballot process with its members that disclosed a consensus to mobilise for industrial action should the wage negotiations fail. The union said the CCMA has committed to present a revised salary/wage offer by close of business on Monday. 'If no revised offer is forthcoming, UNTU will issue Transnet with a 48-hour notice of industrial action,' it said in a statement. UNTU general secretary, Cobus van Vuuren, said the majority of ballots cast by the majority union's members was in favour of taking to the streets to demand a wage increment that reflected the deepening economic crisis facing Transnet employees and job security. Van Vuuren said the three-day S150 CCMA intervention facilitated by two senior commissioners failed to break the Transnet salary/wage 2025/26 impasse; therefore, the status quo remained in terms of this deadlock. 'The proceedings spanning over three days concluded on Thursday, without the parties reaching consensus on a revised salary/wage increase offer. UNTU participated in the S150 process in good faith, fully committed to securing a fair and sustainable outcome amid the rising cost of living and the ongoing operational and structural challenges facing Transnet,' he said. UNTU is demanding a 10% wage increase for 2025/26, a R2 500 housing allowance, R2 500 medical aid allowance, and the removal of a cap on overtime from Transnet. The union has also rejected a proposed wage increase of 6% over two years and 5.5% in the third year. Van Vuuren said that throughout the process, UNTU tabled a variety of salary/wage proposals for Transnet's consideration. 'We are confident we are in line with the economic and financial pressures facing our members, with a high emphasis on job security while at the same time paying due cognisance to the challenges Transnet faces. The proposals, which UNTU presented, cannot be disclosed at this time due to the confidential nature of the S150 process,' he said. 'We had hoped that Transnet and its mandate-givers would seriously consider these proposals, particularly given the potential economic impact of industrial action and the value of securing a longer-term agreement securing labour peace during this critical time in Transnet's turnaround into a sustainable self-funded entity.' Van Vuuren said that the resolution of the deadlock now rested with the CCMA, which he said has committed to present a revised salary/wage offer by close of business on Monday. 'Should no revised offer be forthcoming, UNTU will issue Transnet with a 48-hour notice of industrial action. This could potentially result in industrial action commencing on Thursday, 22 May 2025, in line with the overwhelming mandate secured from its members,' he said. 'UNTU has made the necessary logistical preparations to ensure our readiness for industrial action. If a revised offer is received, UNTU will initiate a structured mandating process to determine if our members accept or reject the tabled revised salary/wage offer.' The Federation of Unions of South Africa (Fedusa) has backed UNTU as its affiliate in the wage negotiations with Transnet. 'Should the intervention by the CCMA fail and UNTU members find themselves compelled to embark on industrial action to secure fair wages, Fedusa will support them,' said the federation.
The Citizen
21-05-2025
- Business
- The Citizen
Are threats against Transnet over? CCMA sends revised offer to halt strike
The warning raises the question of whether Transnet can afford salary increases for more than 46,000 employees There might be light at the end of the tunnel in the wage negotiations deadlock between Transnet and the United National Transport Union (Untu), as a revised offer has been put on the table. The Union representing the majority of Transnet workers has stated multiple times that it would not mind bringing the already-struggling entity to its knees if its members do not receive the salary increase they deserve. Untu had promised that its members would down tools on Thursday if the Commission for Conciliation, Mediation and Arbitration (CCMA) had not sent a revised salary offer. CCMA delivered the revised offer on Tuesday, instead of Monday, as the union had requested. ALSO READ: Transnet faces standstill on Thursday as Untu demands revised offer Offer delivered by Transnet The cost of living is high for the middle and lower classes of South Africa, and salary increases are justifiable. However, some companies, such as Transnet, are already struggling to maintain operations. Are salary increases that match the cost of living possible? Transnet offered a salary increase of 6% this year, 6% in 2026, and 5.5% in 2027. Untu is demanding a 10% wage increase, as well as housing and medical subsidies. The union representing the minority of Transnet workers, the South African Transport and Allied Workers' Union (Satawu) accepted the offer by the cash-strapped entity. The entity previously stated that the increase is effective as of 1 April 2025, and since Untu did not accept the offer, its members were not eligible for the increase. Offer put on the table by CCMA The revised offer made by CCMA, following the facilitation of the S150 process between the entity and Untu, is for the next three years. 'The proposed agreement will apply to all bargaining unit employees as defined in the Transnet Bargaining Constitution,' said Untu spokesperson, Atenkosi Plaatjie. The offer is a three-year agreement that will commence on 1 April 2025, and will end on 31 March 2028. Each year, all Transnet employees will receive a 6% increase. Plaajie said it is now up to Untu members to either accept or reject the offer made by the CCMA. If the majority of the members accept the offer, the leaders will sign the agreement, which will be binding for all employees. ALSO READ: S&P places Transnet on 'credit watch' What about the strike? She added that, should the majority of the members reject the offer, the leaders will issue a strike notice to Transnet, as previously mandated by their members through a balloting process. 'Employees in the Bargaining Unit who had not received the wage adjustment on 1 April 2025, will receive such adjustment from the June 2025 pay-month, backdated to 1 April 2025. 'The modus of calculation and payment period must be determined by agreement between the parties, similar to the previous wage agreement.' Transnet also committed to no mandatory retrenchments over the three years outlined in the tabled proposal. 'The Parties must revert to the Commissioners by 10 June 2025,' added Plaajie. Will government bailout Transnet? Moody's Ratings has warned that the state-owned logistics company, Transnet, could run out of money in the next three warning raises the question of whether Transnet can afford salary increases for more than 46,000 employees Moody's provides data, intelligence, and analytical tools to help business and financial leaders make informed decisions. The warning that Transnet could run out of money within the next three months could intensify pressure on the government to initiate a financial rescue. The ratings agency believes Transnet needs further government support to refinance upcoming debt maturities and secure funds for its expanded capital expenditure programme. NOW READ: SA's poor service delivery linked to almost R500 billion spent on SOE bailouts
The Citizen
19-05-2025
- Business
- The Citizen
Transnet faces standstill on Thursday as Untu demands revised offer
Untu said that if no revised offer is forthcoming, it will serve Transnet with a 48-hour notice of industrial action. The United National Transport Union (Untu) is all ears for a revised offer from the Commission for Conciliation, Mediation and Arbitration (CCMA), following yet another unsuccessful round of wage negotiations with Transnet. The union had requested a 10% wage increase, as well as housing and medical subsidies, from the struggling state-owned logistics company. However, Transnet had only offered 6% this year, 6% next year, and 5.5% in 2027. Untu has been threatening Transnet with a strike that could cost the company billions in rail operations. The union represents more than half of its 46 000-strong workforce. ALSO READ: Untu makes one last attempt to reach a wage deal with Transnet before major strike Untu gives Transnet several options The CCMA sent two senior commissioners to intervene in the section 150 (S150) conciliation process between Untu and Transnet. The Untu spokesperson, Atenkosi Plaatjie, stated that the union presented various wage proposals during this round of negotiations for Transnet's consideration. It believes these proposals were in line with the economic and financial pressures facing its members, with a high emphasis on job security, while at the same time taking due cognisance of the challenges Transnet faces. At the moment, the union cannot disclose further details of the proposals due to the confidential nature of the S150 CCMA-facilitated process. 'These proposals however prioritised labour stability, job security and the sustainability of Transnet, we had hoped that Transnet and its mandate-givers would seriously consider these proposals, particularly given the potential economic impact of industrial action and the value of securing a longer – term agreement securing labour peace during this critical time in Transnet's turnaround into a sustainable self-funded entity,' she added. Untu waiting for CCMA Plaatjie said the union participated in the S150 process in good faith, fully committed to securing a fair and sustainable outcome amid the rising cost of living and the ongoing operational and structural challenges facing Transnet. 'The resolution of the deadlock now rests with the CCMA, which has committed to present a revised salary/wage offer by close of business on Monday, 19 May 2025. She added that, should no revised offer be forthcoming, the union will issue Transnet with a 48-hour notice of industrial action. ALSO READ: Transnet and trade unions square up over wage demands Strike on Thursday She said after issuing Transnet with a notice, the strike could commence on Thursday, with overwhelming support from its members. 'Untu has made the necessary logistical preparations to ensure our readiness for industrial action.' However, should a revised offer be received by close of business Monday, the union said it will initiate a structured process to determine whether our members accept or reject the tabled revised salary and wage offer. 'Untu will announce the way forward to the media in due course.' CCMA intervention 'The CCMA Section 150 (S150) process is a legal framework within the South African Labour Relations Act (LRA) that allows the CCMA to appoint a commissioner to assist in resolving industrial disputes, potentially in the public interest. 'This intervention can be initiated when the parties to a dispute agree to it and understand that it suspends any right to strike.' Untu is the only union that has not accepted the proposed offer by Transnet. Whereas, the South African Transport and Allied Workers' Union (Satawu) has accepted the offer. Transnet, which is already struggling, previously said it is unable to legally extend the increase to Untu members. Satawu members were eligible for the increase effective 1 April 2025. 'Until Untu and Transnet conclude a collective agreement on wages and conditions of employment, Untu members will not receive a wage increase or any increase to medical subsidy, the housing allowance, pension fund contributions and other associated benefits.' NOW READ: Transnet executives to repay millions in irregular contract payments
