The United National Transport Union (UNTU) has no other option but to ask its members to embark on an indefinite strike, to the detriment of millions of commuters, after the Passenger Rail Agency of South Africa (Prasa) refused to increase its final wage offer of 6%.

A Commissioner at the Commission for Conciliation, Mediation and Arbitration (CCMA) issued a certificate of non-resolution this afternoon, after Prasa management came back to the conciliation without a new mandate. Prasa was given two weeks to get a new mandate amidst their Minister being fired and their board being dissolved.

“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.

“Prasa is also not prepared to increase any of the allowances Labour demanded. These allowances have not been increased in years,” says Steve Harris, General Secretary of UNTU.

According to Harris, 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.

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.

UNTU will now embark on a process of getting a mandate from our members in terms of our Constitution.

Issued by United National Transport Union