The United National Transport Union (UNTU) has signed a 7.1% wage increase agreement for its members at State-owned freight group Transnet. The three-year agreement is backdated to April 1, 2018.
The housing allowance and the medical aid allowance will also increase by 7.1%, UNTU said on Wednesday.
The union added that Transnet had agreed that there would be no forced retrenchments in the next three years.
UNTU president Wyndham Evans said that the union had obtained a mandate from most of its branches to sign a multi-term wage agreement for a 6.5% salary increase for this year, 7.5% increase for 2019 and 7.75% for 2020. He said, however, that the current distribution of the increase would put members in a better financial position year-on-year.
“Although the consumer price index excluding mortgage costs is only 4.8%, UNTU realises that the increase of 1% on value-added tax and the increased fuel tax-levy will have a significant negative impact on the budget of all households,” he said.
“UNTU believes this wage agreement is the best organised labour could reach, bearing in mind the difficult financial situation Transnet and the country finds itself in after the international rating agency, Standard & Poor’s, downgraded the State-owned enterprise rating to junk status in November last year.
“UNTU remains committed to protect the jobs of all its members while negotiating wages and better working conditions,” said Evans.