TRANSNET, UTATU SIGN NEW PAY INCREASE DEAL

May 21, 2010

Embargo: none

Following acceptance of Transnet Limited’s new wage settlement offer by members of Utatu, the majority trade union at Transnet, the Company will implement the pay increase deal for returning employees on Monday. The agreement, which was signed this afternoon with the elected representatives of Utatu, which represents the majority of our bargaining unit employees, follows the second round of CCMA-facilitated talks, initiated by Transnet, to reach a settlement this week. Satawu, the other recognized union, rejected Transnet’s final offer.

Meanwhile, the Company has encouraged and appealed to all members of Satawu to return to work after the acceptance of the offer by the majority of our employees. There is no need for colleagues, who have already lost two weeks’ worth of pay, to lose more money as the new offer is fair.

Acting chief executive at Transnet, Chris Wells, has welcomed the deal, which gives workers an above-inflation increase on pensionable earnings and demonstrates the extent to which Transnet went to reach a settlement. “We are disappointed that Satawu has again rejected the offer which is generous and is at the limit of what is reasonable in the current economic environment. We have worked tirelessly for months to avert the strike and the ensuing harm to our employees, damage to our assets and setback to the economy”.

Amongst others, the deal, which is being communicated to employees across the company, will:

• Offer bargaining unit employees an across-the-board above-inflation increase on pensionable earnings. This will in effect increase the company’s total wage bill by more than R1 billion or 11%;

• Introduce a new medical aid dispensation enabling all employees to belong to any accredited medical aid scheme;

• Provide full-time employment to some 1 000 contractors at Transnet Capital Projects. In addition, a process of dealing with other contractors at TCP has been agreed;

• Ensure that none of Transnet’s employees will earn less than R50 000 per annum; and,

• Give all bargaining employees an ex gratia payment ofR1 000.

Mr Wells has commended Utatu’s leadership for its sense of maturity and “good sense” in agreeing a deal which is “fair and good for employees, Transnet and South Africa”. “I urge all employees to go back to their depots and various work stations across the country to prioritise the interests of our economy and Transnet’s customers. The top priority now is to clear the backlogs built up during the strike. To this effect, we will keep all the command centres under the leadership of our senior teams operational until the backlogs are cleared. We also need to focus our energy on what truly matters in this vital business – that is, achieving significant improvements in productivity and efficiency, safety and customer levels as part of the Quantum Leap initiative”, he says.

Over the last few days, we have noted that more and more of our colleagues are returning to work.

Simultaneously, Mr Wells extended Transnet’s gratitude to its customers and clients and other stakeholders for their understanding and co-operation in contingency plans during the crisis period of the last two weeks.

On behalf of the Board of Directors, Prof Geoff Everingham, the acting Chairman, says the Board has commended the responsible way in which management has handled the strike. The Board of Transnet met on Thursday (20 May 2010) to consider the strike situation and the intended settlement. At the meeting, it was apprised of the situation and the mediation effort, and the Board reconfirmed its support for the Executive, the process followed and the proposed way forward.

However, Mr Wells has warned those employees, who are electing to continue with the strike, to respect the rights of colleagues who want to work and not to be led into criminal behaviour.

Commenting on the violence and vandalism that has accompanied the two-week strike, Mr Wells says: “The law must take its course against those responsible. No effort will be spared in protecting our colleagues who want to work and assets during any continued industrial action. We remain on high alert”.

Issued on behalf of Transnet Limited by:
John Dludlu
Spokesman for Transnet Limited
(011) 308 2458
083 676 1881
083 277 4774
john.dludlu@transnet.net
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