Following a second round of talks, wage negotiations between State-owned freight logistics group Transnet and its affiliated labour unions have reached a deadlock.

The negotiations took place with the South African Transport and Allied Union (Satawu) and the United National Transport Union (Untu) on behalf of the bargaining unit employees, under the Transnet Bargaining Council (TBC).

Transnet states that the difficult economic climate and the resultant decline in the operational and financial performance the company is experiencing means it is not in a position to accede to the demands made by the unions in the TBC.

However, in a joint statement, Untu and Satawu general secretaries Steve Harris and Jack Mazibuko say that Transnet wants workers to “bear the brunt of the decade of State capture and the years of irregular expenditure and mismanagement”.

In the current context, Transnet reports that it believes its own tabled offer is “reasonable and realistic”.

Untu and Satawu confirm that Transnet tabled a proposed a 3% non-pensionable allowance on basic salary as a wage increase, but say Transnet refused to guarantee that no retrenchments would take place. “This offer is so bad that organised labour cannot even present it to their constituents to obtain a revised mandate. It is rejected in totality,” the unions state.

Further, Transnet says that, for the nine months to December 31, 2020, the company reported a decline in volumes, resulting in lower revenues – primarily as a result of the economic downturn.

At the present moment, Transnet says its priority focus is to ensure improvements in operational and financial performance to get the company back on a positive growth path, and to sustain jobs.

The next step will be for the TBC to schedule a conciliation process in terms of the Labour Relations Act.

Following this, Transnet will continue to address this matter “in the best interests of the company, its shareholder, employees, customers and the economy”, the company states.

Harris and Mazibuko say organised labour is prepared to fight the Transnet wage battle and, if the parties are unable to reach an agreement at the TBC after conciliation, a certificate of nonresolution will be issued, which will allow employees to embark on a protected strike.