Mining wage

South Africa’s Transnet reaches three-year wage deal with majority union

Oct 17 (Reuters) – South Africa’s state-owned logistics company Transnet said on Monday it had reached a three-year pay deal with the union representing the majority of its workers, ending a two-week strike that had hit exports of raw materials and had accumulated. million losses.

“Transnet and the company’s majority union United Transport and Allied Trade Union (UNTU) today reached a three-year wage agreement,” he said in a statement, adding that the deal would bring most of its employees at work.

UNTU members, who make up more than half of the company’s workforce, went on strike on October 6, demanding a raise tied to South Africa’s year-on-year inflation rate, which was 7.6% in August.

Transnet said it had agreed to a 6% salary increase for the current financial year, a 5.5% increase next year and a further 6% increase in 2024. L The deal is effective from April 2022, he said.

“The company’s immediate priority is to eliminate any backlog in the port and rail system – prioritizing urgent and urgent cargoes,” Transnet said.

UNTU officials were not immediately available for comment.

A spokesperson for the South African Transport and Allied Workers Union (SATAWU) told Reuters the minority union had yet to agree to a deal with Transnet.

The strike has hampered Transnet’s rail and freight port operations, including the port of Durban, one of the busiest in Africa, which has impacted exports of mining and agricultural products.

Last week, South Africa’s Minerals Council said mining companies were losing 815 million rand ($45.27 million) a day in export revenue due to the strike, as major ports mineral export companies were operating between 12% and 30% of their daily averages due to the strike. on strike.

The strike has also affected the horticulture sector, with fruit exporters struggling to ship their produce to overseas markets.

($1 = R18.0020)

Reporting by Nelson Banya in Harare Editing by Promit Mukherjee, Matthew Lewis and David Evans

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