South Africa’s Transnet and the trade unions representing non-management staff have concluded an unprecedented three year wage agreement, which promises stability at the country’s ports and rail and other Transnet divisions.
Members of the Satawu and UNTU unions have agreed on 7%, 7.5% and 8.25% wage, night shift and standby allowance increases for the next three years including 2018. There is also an agreement on housing and medical aid allowances for the same period, according to Ports & Shipping. Previously, the ports and other Transnet divisions faced the likelihood of annual crippling strikes, usually during the winter period, with devastating effects on ship and cargo handling.
The agreement also ensures that workers at Transnet will be able to share in the company’s successes. “We need to double our efforts to improve 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.
Throughout the three year period there will be no forced retrenchment because of operational reasons.
In a separate agreement, first-line managers, specialists and technicians who fall between management and the bargaining unit are to receive 75% of the negotiated annual increase, while the remainder is to be subject to the performance of the employee.
The increases will be backdated and effective from April 1, 2015.