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Prasa, transport unions strike wage deal

Johannesburg - The Passenger Rail Agency of SA (Prasa) and unions have reached an agreement on an 8% wage increase, it said on Monday.

"The agreement comes at a time when most workers in the country are demanding double-digit salary increases and, in some instances, resorting to unprotected strikes that have negatively affected the South African economy," Prasa said in a statement.

It said employees in its corporate office, Prasa Rail, Prasa Technical and Prasa Cres would receive an 8% pay hike back-dated to April 1.

Employees earning R96 000 a year and less would get a 9% increase.

"Given the current economic climate, which has been marked by unprecedented strikes and damage to property, this agreement represents a huge achievement for Prasa and the country as a whole," said Prasa group CEO Lucky Montana.

"The unions could have insisted on a 10 or 15% increase but they chose to accept the offer from Prasa management," he said.

"The agreement is key to the stability of our business and the provision of transport to commuters who go through our system daily."

He said Prasa was indebted to the SA Transport and Allied Workers' Union (Satawu) as well as the United Transport Trade Union (Utatu) and the South African Railworkers Union (Sarwhu).

Satawu national sector coordinator Lubabalo Tinzi said the increase agreed to would meet workers' standard of living.

That the parties had avoided involving the Commission for Conciliation, Mediation and Arbitration, and a strike, meant they were maturing, he said.

Utatu Sarwhu deputy general secretary Pieter Greyling said the separation of wage negotiations from those on conditions of service and operational issues had helped speed up the process.

Prasa said its board had met and endorsed the increment for all junior employees, and had resolved that all middle managers up to the level of senior management would get a 6% increase while general managers, group executives and CEOs would get a 5.3% rise.

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