MyPE

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66% Of Transnet’s Monthly Operating Costs go to…..

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Salaries and Wages. There is no blanket standard for the ratio of salaries to Operating Costs but to the layman 66% does seem quite high in comparison to reported averages in the retail industry which vary from 18 to 22% or the health care industry at 50 to 55%.

Although the 66% number does seem high in comparison to other input costs from machinery to tugs to helicopters to gantries and the like.

At a recent meeting Transnet tabled an improved wage offer to the leadership of its recognised labour unions – South African Transport Allied Workers’ Union (SATAWU) and United National Transport Union (UNTU).

Transnet then tabled the offer formally at the Bargaining Council on 5 October 2022 with UNTU and will do the same on 7 October 2022 with SATAWU.

The meeting on Tuesday ended with Transnet making a revised wage offer for bargaining unit and management employees, including the following key elements:

  • A 3% increase to guaranteed pay, with effect from 1 April 2022.
  • The back-pay for the April to September 2022 period will be made in three equal amounts beginning January, February, and March 2023.
  • From the end of October 2022, salaries will be paid with the 3% increase.

A once-off ex gratia payment to each employee, which amounts to R7 600 before tax, to be paid at the end of the financial year. This affords Transnet time to raise the money over the remaining 6 months of the year from our identified operational activities.

The revised offer further increases Transnet’s fixed salary base and therefore, operating costs. Transnet’s wage bill already accounts for 66% of the company’s monthly operating costs, and given the current operational and financial performance of the business, it would be ill-considered to offer unsustainable wage increases.

However, given the role that Transnet plays in the economy, it is equally crucial that everything possible is done to ensure that a strike is averted.

Transnet says that they remain confident that with this revised offer, a resolution can be reached. This will allow the organisation to focus its full attention on improving operational performance and delivering value to all our stakeholders.

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Alan Straton

Chief Cook, Bottle Washer and Broom Mechanic at MyPE
Passionate about Port Elizabeth and definitely NOT packing for Perth. Alan's ethos is epitomised in the words of Nelson Mandela; "I have fought against white domination and I have fought against black domination. I have cherished the idea of a democratic and free society. If need be, it is an ideal for which I am prepared to die." See more articles by Alan.