The Congress of South African Trade Unions (COSATU) congratulates its resilient Affiliate, South African Transport and Allied Workers Union (SATAWU) for reaching an above inflation wage agreement with the Passenger Rail Agency of South Africa (Prasa). SATAWU and fellow union, Untu, accepted a 5.5% wage offer after being locked in negotiations with Prasa for months. The agreement includes a no-retrenchment clause.

The parties appeared far apart at the beginning of the process with labour demanding a double-digit across-the-board increase, a R3 000 housing subsidy, medical aid subsidy with the employer contributing 70%, a standby and night shift allowance as well as a moratorium on retrenchments. Prasa’s recent lowball offer of 3% was rejected by unions, who called it an insult to workers. The 5.5% wage increase will be backdated to April and paid as a lumpsum to workers in September.

Prasa has been making headlines lately with its proposal to increase ticket prices starting 1 August. Commuters and commuter associations alike have cried foul saying in some zones the increase will be as much as 58%. COSATU has urged the rail agency to be moderate and limit the fare increases to the prevailing inflation rate given the financial pressures commuters are under. The Federation also believes Prasa should rather focus on bringing the millions of commuters it had before Covid-19 back to its rails before it can even consider an above inflation increase.

Issued by COSATU