Transnet tables final wage offer

Untu spokesperson Steve Harris says Transnet proposed a three-year wage agreement deal that includes a 6.5 percent salary hike in the first year.

''This 6.5 percent will exclude increases in medical aid subsidies and housing allowances or any other allowances whatsoever.” 

However, Untu is demanding a 12 percent salary hike every for the next three years, as well as increases in medical aid subsidy and housing allowances.

The union says the medical aid subsidies need to be increased since the only two medical aids Transnet members could belong to had increased fees by between eight and 10 percent for 2018.

Harris says Transnet is blaming their stance on South Africa's full junk status downgrade by rating agency S&P Global in November.

"Transnet says with the recent downgrading, any salary hikes above 6.5 percent will affect their balance sheet quite negatively. However, we haven't accepted the offer yet, we still need to speak to our constituency to hear what they make of the deal."

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Transnet Chief Executive Officer Siyabonga Gama recently announced a profit of R37.1 billion rand, suggesting at the same time that salaries could be hiked. 

''Transnet also changed its mind about the no retrenchment for the next three years. They said the current economic climate is too uncertain and that there might be an operational need for retrenchments in future,'' Harris says.