Transnet and unions for bargaining unit employees (non-managerial staff) have concluded a historic, unprecedented 3-year wage agreement.

Transnet, Satawu and UNTU agreed to 7%, 7,5% and 8,25% wage, night shift and standby allowance increases for the next three years up to 2018. In addition, the company and the unions agreed on housing and medical aid allowances for the three-year period.

Transnet said the agreement would allow it to focus on the execution and implementation of its R300 billion Market Demand Strategy. “The agreement demonstrates that all members of the Transnet family are committed to driving a high-performance culture, and to creating a globally competitive freight transport and logistics company South Africa can be proud of. This agreement is confirmation that all of us agree that we need to double our efforts to improve productivity and efficiency as we strengthen the logistics competitiveness of the country. At the same time, we will be strengthening key identified market segment supply chains,” a Transnet statement read.

On the issue of job security, the parties agreed that there will be no forced retrenchment for operational reasons, throughout Transnet for the duration of the agreement.

First-Line Managers, specialists and technicians who fall between management and the bargaining unit, will receive increases of 75% of the negotiated annual increase and the remainder will be subject to employee’s performance. This is part of a separate agreement.

The increases will be backdated and are effective from 1 April 2015.