Unions, Transnet deadlock in second round of talks over wage hikes

The unions are demanding, among other issues, a salary increase of 10% against the employer's offer of 0%.

Picture: www.transnet.net

DURBAN - Wage negotiations between Transnet and workers unions have reached a deadlock following a second round of talks.

The unions are demanding, among other issues, a salary increase of 10% against the employer's offer of 0%.

In a statement, Transnet said that it had been severely impacted by a decline in volumes of goods transported and it simply did not have the funds to meet workers’ demands.

Workers unions Untu and Satawu initially demanded a 12% salary increase from Transnet but the state-owned entity has refused to concede to their demands even after they lowered it by 2%.

Transnet spokesperson, Ayanda Shezi: "Transnet believes that its offer is reasonable and realistic, particularly in the context of the climate that we find ourselves in which has resulted in a decline in the financial performance of the company."

Satawu’s Jack Mazibuko said that they had now referred the matter to the bargaining council.

"They're offering us 0%, they only want to increase an allowance, so through that labour has decided that the company is not negotiating in good faith."

In the meantime, Transnet said that it would continue to address this matter in the best interests of the company - its shareholder, employees, customers and the economy.

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