The United National Transport Union (Untu) and South African Transport & Workers Union (Satawu) on Monday submitted a consolidated wage demand to Transnet for a 12% salary increase for the next three years.

According to a statement, Untu wants a three-year multi-term agreement with an undertaking from Transnet that there will be no forced retrenchments during this period.

Untu General Secretary Steve Harris said that organised labour believed it was a realistic demand given the current struggling economic climate.

According to Harris, Transnet announced on October 30, that its profits had soared to R37.1-billion after the company gained market share in general freight cargo and coal volumes. Transnet’s revenue rose by 13.8%.

Labour is demanding that Transnet increase its contribution to employees’ medical aid and to the housing allowance to R1 790 for 2018/19, R2 500 for 2019/20 and R3 500 for 2020/21. All other allowances paid by Transnet must increase by 12% each year for the next three years.

Labour also wants all its demands to be implemented from April 1, 2018, and that the agreement must be signed before the end of the year to ensure that employees don’t have to wait for back pay.

According to the statement from Untu, Tumelo Mokoena, Transnet General Manager Human Capital, responded that labour’s demand was very high. “We are still going to cost it,” Untu quoted Mokoena as saying.

Untu said that according to Mokoena, Transnet is considering the settlement patterns over the past two years, the cost of living and the sustainability of the wage demand. Transnet has agreed to a no-retrenchment clause with labour over the past six years.

“Our summary is that the demands are a very taxing list of issues. We will go and cost it and come back to you,” Mokoena said in the statement by Untu.

Transnet has also agreed that the wage increase must be implemented no later than  April 1, 2018.

The negotiations are scheduled to continue November 27 at the Transnet Bargaining Council.