By Lehlohonolo Lehana.
The Passenger Rail Agency of South Africa (PRASA) on Friday signed the 2023/24 one-year wage agreement with labour unions after lengthy and delayed negotiations.
The agreement follows a decision made by the PRASA board control to implement a 5% salary increase for all PRASA employees.
The United National Transport Union (Untu) and the South African Transport and Allied Workers’ Union (Satawu) have been engaged in wage talks with the employer for the 2023/2024 financial year.
They were demanding 5% salary increases, back dating to April for all PRASA employees, both management and bargaining grades.
The increment is effective across the board for all Prasa employees from April 1 this year.
PRASA spokesperson Andiswa Makanda says the agreement will ensure the sustainability of the business.
“PRASA will effect this increase on total guaranteed pay (TGP), across the board, for all PRASA employees in the bargaining unit employed in its Corporate Office, PRASA Rail, PRASA Technical and PRASA CRES as at the date of signing of this agreement.
“We are very pleased to have reached an agreement, and we thank labour for their engagement, collaboration and constructive feedback throughout the wage negotiation process. We believe that this agreement will ensure the sustainability of the business and that our employees are rewarded for their work.”
Meanwhile, Satawu General- Secretary, Jack Mazibuko, says despite outstanding issues over their wage demands, they are happy to finally sign the one-year wage agreement with PRASA.
Mazibuko says they will engage in more wage negotiations early in 2024.
UNTU said it was pleased their members would not have to take to the streets to protest.
“It is crucial to reflect on the unusual circumstances surrounding the commencement of these negotiations. The negotiations were supposed to begin in October 2022 but were delayed by almost a year, among others, as a result of the VSP process that was concluded in October.
“It was essential for UNTU to avoid the use of Chinese bargaining tactics and reach an agreement to enable the team to begin with the 2024/2025 wage negotiations without any further delay,” said UNTU deputy secretary-general Dan Khumalo.