Freight logistics group Transnet on Tuesday night signed a three-year wage agreement with the South African Transport and Allied Workers’ Union (Satawu) and the United National Transport Union (UNTU).

The agreement will see bargaining unit employees receive increases of 7%, 7.5% and 8.25% in the three years to 2018. The increases would be backdated to April 1.

Further, nightshift and standby allowances would increase, as would housing and medical aid allowances.
 
“Crucially, [the agreement] allows us space to focus on the execution and implementation of our Market Demand Strategy. It also demonstrates that all members of the Transnet family are committed to driving a high performance culture and to creating a globally competitive freight transport and logistics company South Africa can be proud of.

“This agreement is confirmation that all of us agree that we need to double our efforts to improve on productivity and efficiency, as we strengthen the logistics competitiveness of the country. At the same time, we will be strengthening key identified market segment supply chains,” Transnet said in a statement on Wednesday.

It further pointed out that the parties had agreed that there would be no forced retrenchment for operational reasons, throughout Transnet for the duration of the agreement.

“This confirms the determination by Transnet, Satawu and UNTU to ensure sustainable jobs,” stated Transnet.

Meanwhile, as part of a separate agreement, first-line managers, specialists and technicians, who fall between management and the bargaining unit, would receive increases of 75% of the negotiated yearly increase, with the remainder subject to an employee’s performance.