(Reuters) – South Africa’s United National Transport Union (UNTU) said on Thursday it rejected a final wage offer tabled by state-owned logistics group Transnet, which was signed by a smaller union.
Transnet on Thursday announced a three-year pay agreement with the South African Transport and Allied Workers’ Union (SATAWU) to replace the current wage deal which expires on March 31. SATAWU confirmed the agreement in a separate statement.
Under the deal agreed with SATAWU, Transnet will implement 6% wage increases in the first two years of the new agreement and a 5.5% raise in the third year.
UNTU, which represents more than half the workforce at Transnet, declared a deadlock in the wage talks, saying it wants a 10% increase across the board and a single-year agreement, among other demands.
“UNTU is fully prepared to take to the streets and mobilise our 25,000-plus members to secure a liveable, just and fair agreement,” it said in a statement.
Transnet said it remained “positive that this offer will be accepted by all employees”.
“Transnet considers the offer to be reasonable and fair given the current financial and operational challenges,” the firm said.
(Reporting by Nelson Banya; Editing by Mrigank Dhaniwala)
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