Transnet faces worker revolt

Johannesburg - The ports and railways utility Transnet might be hit with crippling labour action as it has failed to reach an agreement on wages with labour representatives, who on Tuesday threatened to lead its workforce into a strike.

"Conciliation in a wage dispute between the two recognised unions and Transnet came to an end late last night, making way for the possibility of strike action across South Africa's port, rail and pipeline systems," said the South African Transport and Allied Workers' Union (Satawu) in a statement.

Satawu and the United Transport and Allied Trade Union (Utatu) represent the majority of Transnet's estimated 50 000 workforce.

Labour's 15% wage hike demand for financial 2010 is almost double the 8% Transnet offered. Satawu said the demand is an attempt to make up for unsatisfactory wage increases in 2009.

"The demand has also been fuelled by the massive bonuses paid to managers," said Satawu, adding that over half the bonuses paid in 2009 went to less than 10% of the total workforce.

"The eleven executive managers received an average of R2.5m in bonuses whereas the average bonus paid to workers in the bargaining unit was R10 000," said Satawu. The union said these massive discrepancies are "fuelling inequality and greed on the part of a few".

Transnet's 2009 annual report showed that acting CEO Chris Wells was paid R6.8m during the year, including a R2.8m bonus.

The union's demand is that the bonus system should be negotiated with labour representatives while management insists it will only "consult". "In Satawu's view this leaves the door open for Transnet to continue paying ludicrous bonuses to senior managers, based on performance targets that are in some instances anti-worker," the union said.

Labour unions are further demanding the "immediate permanent employment" of all fixed-term contract workers. It says only 360 of the 5 000 employees in the utility's infrastructure and capital projects division are permanent workers.

"Many workers have been exploited for years through being employed on repeat annual contracts, which denies them any benefits and normal rights to leave," said Satawu.

Satawu will be presenting Transnet's final offer to its national council of shop stewards on Thursday, and thereafter to general membership in the provinces before making a final decision on the way forward.

According to labour legislation, unions must vote on whether to go on strike.

- Fin24.com