Reference no: EM133298628

Striking Unions Reject Transnet Offer, Say Strike to Intensify (October 2022)

Transnet workers affiliated to the SA Transport and Allied Workers Union (Satawu) and the United National Transport Union (Untu) have rejected the latest offer from their employers which was made after two days of wage talks facilitated by the CCMA.

Protected strike
The strike entered its eighth day on Thursday 13 October 2022.
When the strike first started, eight days ago, Transnet made an urgent interdict application at the Labour Court, alleging that the strike was unprotected. In a statement, Transnet accused Untu of not following the prescripts set down in the Labour Relations Act prior to embarking on the strike. Untu said Transnet refused to talk about the picketing rules ahead of the strike. The Labour Court dismissed Transnet's urgent interdict application, indicating that the strike was indeed a protected strike.

Transnet's offer on Wednesday 12 October 2022
On Wednesday 12 October 2022, Transnet's offer entailed a 4.5% across-the-board increase in the current year, which would have been implemented from 1 October 2022. This would have been followed by a 5.3% increase in the 2023/24 financial year and a 5.3% increase in 2024/25.

The offer also included a 4.5% increase in the medical aid allowance in 2022/23, which would be adjusted in line with the across-the-board increase in the subsequent two years.

Shezi, the spokesperson for Transnet, said: "The company remains committed to concluding the wage negotiations speedily and amicably in the interests of employees, the company and the economy ."

Satawu general secretary, Jack Mazibuko, said the offer was an insult which had disgusted and annoyed the union. Mazibuko said: "The employer has been insulting, undermining and disrespecting the workers for the past five months since the beginning of negotiations when they first offered us a 1.5% increase."

Mazibuko said if the Transnet Group Chief Executive could take home R8.9 million a year, there was money to be had for the workers at Transnet whose sweat made the company billions in profits. "We are open to engaging Transnet. We are open to compromise where we need to compromise, but we cannot compromise below the inflation rate," Mazibuko said.

Untu general secretary, Cobus van Vuuren, said they had also rejected the offer and said there was a need for the CCMA commissioner to explain to Transnet that they would not approach their members "with such a ridiculous offer".

CCMA's settlement proposal on Thursday 13 October 2022

In a bid to find common ground on the salary negotiations, CCMA commissioners who have been facilitating the talks between the employer and unions, tabled a settlement proposal of 6% on Thursday, 13 October 2022.

The terms and conditions of the multi-year agreement start from 1 April 2022 to 31 March 2025. The CCMA is proposing 6% for the first year, 5.5% for the second and 6% for the final year.

Untu's general secretary, Cobus van Vuuren, said the union was consulting its members on the new three-year wage offer settlement proposal.

"It must be made clear that this is a proposal that has been presented by the CCMA commissioner to both labour and Transnet without any prejudice, this is not an Untu position, and it is not a Transnet position. It is a position that is proposed by the CCMA Commissioner to try and get parties to common ground. As a mandated driven organisation, we have to approach our members for a mandate to determine whether the proposal by the CCMA commissioner is accepted or rejected by the Untu constituency," Van Vuuren said in a statement.

Ministers get involved
Meanwhile, Public Enterprises Minister Pravin Gordhan, Labour Minister Thulas Nxesi and Agriculture Minister Thoko Didiza have stepped into the fray and issued a joint statement on the strike. The ministers said in the statement the government was "extremely concerned" about the negative impact on the economy.

The ministers said the sooner exports of agricultural products, mineral resources and other manufactured products were resumed, the better it would be as the exports contributed to sustaining hundreds of thousands of jobs across the economy.

Business Unity SA chief executive, Cas Coovadia, and his Business Leadership SA counterpart, Busisiwe Mavuso, pledged in a joint statement to work with the government and Transnet to ensure a continued limited operation of the ports where possible.

Question: Discuss the Labour Relations Act's (LRA's) approach to dispute resolution, identifying the relevant steps and structures. Highlight the steps and structures of the LRA's dispute resolution process which are evident in the case study.