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Transnet agrees pay deal with majority union in South Africa port strike

Photo: Transnet Port Terminals Cape_Town_Terminal_Transnet.jpeg
Transnet says agreement has been reached on a three-year pay day deal with the largest union in the South African port strike.

Port and rail Transnet said that United Transport and Allied Trade Union (UNTU), which represents the majority of workers on strike, had agreed to a new wage deal proposed on Friday.

"Transnet and the company's majority union UNTU reached a three-year wage agreement today, applicable for the period 1 April 2022 to 31 March 2025, in a process mediated by the Commission for Conciliation, Mediation, and Arbitration (CCMA). This ends the current industrial action by UNTU members with immediate effect," according to statement quoted by local press.

The deal effective from April 2022 gives a 6% wage increase for the current financial year, a 5.5% raise next year and another 6% in 2024.

The offer was rejected at the weekend by the other union involved in the strike - South African Transport and Allied Workers Union (Satawu). The union took issue with a failure by Transnet to guarantee that there would be no redundancies.

The strike started on 6 October heavily disrupting South Africa’s port and rail network and Transnet Port Terminals had declared force majeure as a result. Members of UNTU and Satawa voted to strike over a pay offer of 1.5% from Transnet, an offer which had been revised on multiple occasions in the run-up to, and during, the strike.

This year has seen a growing number of port worker strikes around the world including in key ports in the UK and Germany.