Cape Town - Members of the SA Transport and Allied Workers Union (Satawu) insist they will continue with their strike and have condemned Monday’s signing of an agreement with Transnet by workers affiliated to the United National Transport Union (Untu) as a betrayal.
On Monday Untu, the largest trade union at Transnet, signed a three-year wage deal after a week-long strike, lifting an important constraint on South Africa’s export capabilities.
The deal includes a 6% increase in year one, a 5.5% increase in year two, and a 6% increase in year three.
Because Untu accounts for the majority of the state-owned logistics company’s workers, the deal will apply to all workers in the sector, even those who are not members of Untu, but not members of Satawu, with effect from October 1.
Untu has 24 992 members accounting for 53.9% of the bargaining unit employees at Transnet, while Satawu represents 46.1% of port workers nationally. Both unions had originally demanded a hike of 12% to 13.5%.
Satawu general secretary Jack Mazibuko said yesterday they had learnt about Untu’s move with “shock and utmost disappointment”.
He said it was a “genuine class betrayal”, that particularly disadvantaged and undermined the interests of working-class, low-earning employees.
Mazibuko said the Untu deal with Transnet had scuppered the no-retrenchment clause in the current agreement and empowered Transnet to restructure any areas of its business, irrespective of the company’s commitment to comply with it.
He complained that the issue of the deduction of lost wages in two instalments for workers who had gone on strike was not included in the agreement and argued it would be left to Transnet’s discretion.
Absa economist, Peter Worthington, said the settlement came surprisingly quickly and at a modest level compared with the unions’ recent demand for a 12% wage increase.”
The surprise was more so, he said, because Untu signed a below-inflation wage deal, which provides a 6% uplift in the first year, as well as medical aid and housing allowance increases.
Exporters ranging from mining companies to berry producers have complained that the strike cost them significantly, so the fact that it did not drag on for longer is positive, although it will take some weeks to clear the backlog.
Finance and Economic Opportunities MEC Mireille Wenger said the end to the strike by Untu was good news for the economy.
Wenger said the provincial economy relied heavily on its three seaports Cape Town, Mossel Bay and Saldanha Bay to facilitate exports, supporting tens of thousands of livelihoods across the value chain.
“It is especially welcome that the agreement with Untu has been reached before we enter the table grape export season at the beginning of November.”
Wenger reiterated her call for all stakeholders to put South Africa first.
She said top of mind should be the common goal to grow the economy, create jobs, and to re-ignite hope and confidence in the province and the country as a whole.