Transnet And Transport Union Hit Wage Deadlock

The United National Transport Union Untu and Transnet have reached a deadlock regarding the 2025/26 wage negotiations and the union is now preparing to file a dispute that could lead to industrial action.

This comes after a protracted 13-hour mediation process between the union and management at Esselen Park on Wednesday.

Untu general secretary Cobus van Vuuren said in a statement that the union had rejected Transnets final wage offer with the contempt it deserves. He said the union would not be taking the final offer from Transnet to its members for a mandating process.

Untu has a clear mandate from our constituencies, and the final offer tabled by management remains far from the mandate received from members, he said.

However, Transnet said it had reached a three-year wage agreement with the South African Transport and Allied Workers Union Satawu after the union had accepted its full and final offer to workers.

In terms of the wage agreement, Transnet offered a 6 salary increase in 2025 and 2026 and a 5.5 salary increase in 2027.

Van Vuuren said the union viewed the offer as just an extension of the 2022 salary/wage agreement, and accepting such an offer will be detrimental and financial suicide to our members and Transnet employees at large in such a tough economic climate.

He said to add insult to injury Transnet did not want to include a non-retrenchment clause and increase any overtime, housing or medical aid allowance which had not increased in over 10 years.

Untu would also like to officially inform our members that labour still finds itself far apart and at odds, especially since Satawu has officially signed the wage offer by Transnet management.

Untu respects the decision by Satawu but remains puzzled by their decision, especially considering that they were not signatories to the wage agreement in 2022, and we were severely criticised and called sell-outs during 2022. Strangely enough, the wage increase offer that Satawu has signed today is a mirror image of the 2022 wage agreement.

He said the unions revised wage demand remained unchanged and that this called for a 10 across the board increase and a non-retrenchment clause for the duration of the agreement.

However, he said the union had received extremely alarming feedback from Transnets management in terms of the non-retrenchment clause.

Management told labour that they cannot agree for the sake of agreeing, as when the private-sector partnerships come in, they will have no control over retrenchments.

This proclamation sounds the alarm as we can see that the retrenchments are on the horizon, as we have been warned for many years. While Untu appreciates the honesty, Untu remains vehemently opposed to any form of privatisation, however we take note that government, the Transnet board and Transnet management are continuing with the PSP implementation.

He said the union demanded that if Transnet considered any arrangements with PSPs it must be consulted so that terms could be negotiated and agreements established to ensure job security.

In February, labour and management successfully finalised the picketing rules in line with the decisions made at the pre-bargaining conference. Therefore, Untu will declare a dispute of mutual interest at the CCMA.

Untu is fully prepared to take to the streets and mobilise our 25 000-plus members to secure a liveable, just and fair wage increment.

However, in a statement announcing Satawus acceptance of the wage offer, Transnet said it was confident that all workers would accept the deal.

The above-inflation offer, which comes into effect on 1 April 2025, represents a 17.5 wage increment over the three-year period. It includes increases to basic salary and related components 13th cheque and pension fund contribution, medical aid subsidy and housing allowance, Transnet said.

Transnet considers the offer to be reasonable and fair given the current financial and operational challenges and takes into consideration the cost of living, the wellbeing of employees, job security and the organisations long-term financial sustainability. Untu has rejected the offer and indicated it will not take it to its members. We remain positive that this offer will be accepted by all employees.