Transnet averts potential strike after reaching three-year wage agreement with workers unions

Transnet has signed a three-year wage agreement with its majorityunion, the United National Transport Union (UNTU), following a protracted negotiation process that required intervention from the Commission for Conciliation, Mediation and Arbitration (CCMA).

In a statement on Thursday, Transnet said that the wage agreement would see an increment of 6% for the 2025/2026, 2026/2027, and 2027/2028 financial years.

Transnet stated that this above-inflation agreement corresponds to an overall wage increase of 18% across the three years, encompassing increases to basic salaries and additional components, such as the 13th cheque, pension fund contributions, medical aid subsidies, and housing allowances.

“The finalisation of the three-year wage agreement provides labour stability and will enable the company to focus on its immediate strategic priorities of improving operational and financial performance, while positioning the organisation for future growth, thereby ensuring job security and economic growth,” Transnet said.

UNTU general secretary, Cobus van Vuuren, hailed the signing as a pivotal moment following a challenging negotiation period. 

“The agreement was signed between the parties on Thursday evening, 12 June 2025, following engagements between UNTU and Transnet this week,” he said. 

“UNTU is confident that this agreement is fully aligned with the overwhelming mandate received from our constituencies, which have mandated us to sign the CCMA’s facilitator’s proposal following the S150 process by two senior Commissioners.”

UNTU represents more than 26 000 workers at Transnet and had threatened to issue the State-owned freight and logistics firm with a 48-hour notice for a strike if negotiations deadlocked. 

Van Vuuren emphasised that this agreement not only represented a notable salary increment but also reinforced job security—one of UNTU’s primary demands throughout the negotiation process.

“As UNTU committed, we also secured the back payment for the increased retrospective from 01 April 2025, as our members have made great financial sacrifices during this period, as UNTU continued the fight for a better salary increase and, most importantly, job security. UNTU is the majority union in Transnet; therefore, this agreement will be applicable to all bargaining unit employees,” he said.

“The three-year agreement also ensures much-needed labour stability during a critical period as Transnet works to rebuild its operations, restore service reliability, and regain stakeholder confidence.

“As the majority union representing the voices of more than 26 000 employees at Transnet, UNTU confirms that this newly signed agreement supersedes the previous agreement signed between Transnet and the minority union, Satawu.”

Transnet also signed the same wage agreement with its other recognised labour union, the South African Transport and Allied Workers’ Union (Satawu).

Satawu general secretary, Jack Mazibuko, said the union had proposed an alternative wording for the retrenchment clause committing Transnet to no mandatory retrenchments during the currency of the wage agreement.

“Äccordingly, the new retrenchment clause as contained in the employer's final wage offer reads as follows:

1. Transnet commits that there will be no mandatory retrenchments during the currency of the wage agreement.
2. However, should it be necessary to restructure any areas of its business due to operations. economic and/or organisation restructuring reasons, the following process shall be followed:
  a) The employer will comply with the provisions of its existing recognition agreement and prevailing legislation
  b) The employer will establish a multi-disciplinary committee, inclusing labour, to assess the people impact of all restructuting initiatives across the business with the objective to preserve job security for all employees.
  c) The committee will explore opportunities for retirement, redeployment, reskilling and restructing will be explored as alternatives to ensure that there will be no mandatory retrenchments.”

BUSINESS REPORT