The Federation of Unions of South Africa (FEDUSA) is fully behind plans by the United National Transport Union (UNTU), its affiliate in the passenger rail sector to embark on indefinite strike at the Passenger Rail Agency of South Africa (Prasa). UNTU’s decision to strike comes after Prasa after refused to increase its final wage offer of 6%.

The Commissioner at the Commission for Conciliation, Mediation and Arbitration (CCMA) has issued a certificate of non-resolution after Prasa management came back to the conciliation without a new mandate.

“Prasa’s final offer is an insult to its employees. There has been no movement from Prasa management since the start of the salary negotiations in February, when the employer put a 3% salary increase on the table,” says UNTU general Secretary Steve Harris.

“Prasa is also not prepared to increase any of the allowances Labour demanded. These allowances have not been increased in years. Prasa employees have yet to feel the devastating effect of the country’s downgrade to junk status. Prasa Management stayed within the guidelines, given in the budget, state owned enterprises by the former Minister of Finance, Pravin Gordhan”.

Harris said UNTU will now embark on a process of getting a mandate from its members in terms of the union’s Constitution.

According to Prasa they have a R1, 8 billion deficit that will be carried over to the next financial year. The passenger rail agency alleges it is in dire straits and faces the danger of not being able to pay current salaries.

Issued by FEDUSA