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Transnet wages 'more than fair'

May 12 2010 11:40

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Johannesburg - Logistics utility Transnet said on Wednesday it pays more than fair wages to its 50 000 employees, and that labour's demand for a 15% increase appears to be a "coordinated effort" to test government's resolve to control inflation.

"Transnet offers decent pay for decent work to more than 50 000 South Africans," Transnet acting group CEO Chris Wells wrote in Business Report. He said over the years the organisation "has consistently" increased wages above inflation.

Wells said labour seems determined to fight inflation targeting rather than the welfare of its members, or to help South Africa recover from the economic recession.
 
"The unions' demand for a 15% wage across the board increase, not just in Transnet, but in other public utilities, seems like a coordinated effort to test the government's resolve to control inflation," said Wells.

If Transnet were to increase wages by 15% it would "stand accused of being irresponsible to the economy" and also jeopardise its own sustainability.

Wells remained optimistic that Transnet will "at some point" find common ground with the unions on the wages conundrum, but he stated the lack of common ground about the economy was more concerning.
 
The South African Transport and Allied Workers Union (Satawu), one of the two unions on strike at Transnet, said its 15% demand was negotiable. "But not until management makes a serious move," wrote Satawu negotiator and research officer Jane Barrett.

Satawu said it was not going to apologise for its demand as it was fighting to improve the living standards of its members. "We challenge any of the critics [of 15% increases] to live on less than R3 500/month, which is what the lowest paid Transnet workers earn," said Barrett.

The unions are also demanding the abolishment of contract work at Transnet, where up to 5 000 contractors are employed. "We expect much more from parastatals whose shareholder has adopted a policy of decent work."

The United Transport and Allied Workers Union (Utatu) said on Tuesday it had recommended its members accept the revised Transnet offer of an 11% increase, but members voted against it.

"We thought management moving to 11% was reasonable. However, our members rejected it and stuck to 15%," Utatu secretary general Eddie de Klerk told Fin24.com on Tuesday. He said their members' message was clear: "They want a decent living wage."

De Klerk said Utatu will strike for as long as it takes Transnet to table a decent offer. "People are forced to work overtime just to live."

The two unions together represent about 85% of Transnet's workforce.

Sabotage claims

Meanwhile, a train transporting petrol and diesel was derailed between Durban and Johannesburg in apparent sabotage action by striking Transnet workers, a union official has said.

"All indications are that it was sabotage... the concern is that striking workers are responsible for this," said Utatu general secretary Chris de Vos.

"The railway line had been fiddled with... three locomotives and four diesel tankers derailed."

The railway plates had been loosened, causing the train to derail just outside Durban in the early hours of Wednesday morning.

Nobody was injured in the incident.

Asked if commuters needed to be concerned about possible petrol shortages due to the strike, De Vos replied: "Things could get ugly. The corridor between Johannesburg and Durban has now been closed... "We [Utatu] have the biggest majority at pipelines."

De Vos also said 18 locomotives were damaged in the strike on Tuesday. This happened in Ermelo and Durban, when rocks were thrown at locomotives and some locomotives were set alight.

Transnet spokespeople were not immediately reachable on Wednesday morning to confirm the reports.

 - Fin24.com

 
 
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