Transnet has pledged to break the state rail and ports authority’s ongoing pay bargaining deadlock.
Since May of this year, salary negotiations between Transnet and unions have been at a standstill. The Transnet Bargaining Council has now been asked to break the impasse.
“It is regrettable that the parties were unable to resolve their differences amicably and that the Transnet Bargaining Council has now issued a disagreement certificate.
According to a Transnet statement, the company “remains dedicated to continue negotiations with the unions to resolve the conflict and find an acceptable settlement.”
An raise of 1.5% on all pensionable components of compensation, excluding increases in housing allowance and medical aid subsidies, is what Transnet claimed it is proposing employees.
There will be no forced layoffs over the term of the agreement, but Transnet will reorganise, redeploy, and reskill personnel who may be impacted by positions that no longer exist. The raise will take effect on the first of the month after the agreement is signed.
Implementation of distinctive and customised productivity incentive plans for each operational division’s bargaining unit employees, with the potential for additional compensation of up to 16% of earnings on top of the negotiated pay rise. This plan will go into force on April 1, 2022.
“While management has made changes to its first proposal, the unions have not.
With a demand for a 12% increase on annual guaranteed pay and other requests totaling a 21% increase in labour costs, their stance has not changed from prior rounds of wage negotiations.
“The firm considers Transnet’s offer to be reasonable and fair because it takes into account affordability and the company’s existing cash situation.
In the fiscal year 2021, Transnet’s payroll bill accounted for 61% of operational expenses, which is unsustainable.
According to Transnet, the company is putting numerous strategies into place to boost operational and financial performance and guarantee business sustainability.