The Passenger Rail Agency of South Africa (Prasa) has been instructed by the Labour Court to fork out millions of rands towards staff salaries.
This after the state-owned entity failed to honour a wage agreement reached with the unions in 2021.
The passenger rail agency’s total labour costs amount to about R5.8-billion every year, and the court ruling, if adhered to, will increase the entity’s wage bill by another 5%, putting more strain on the agency’s coffers.
In 2022, Prasa recorded R3.8-billion loss on operational costs.
The entity said the majority of United National Transport Union (UNTU) members will be catered for when the wage increase is implemented. However, it said it will find it difficult to extend the wage deal to the rest of the workforce.
Cobus van Rooyen, general secretary at UNTU, said the union plans further court action over the 2022/23 wage increases.
In a letter to members, Van Rooyen said Prasa management has requested a meeting with the transport union to discuss a payment plan. The passenger rail agency also confirmed in a statement late on Thursday that it will honour the court order.
Prasa said it is confident that a mutually acceptable agreement will be reached during its meeting with the transport union.
“The remuneration committee chairperson, advocate Smanga Sethene, will be joined by Prasa management in a meeting with UNTU representatives in the coming week, to find an amicable agreement that balances the needs of our employees and the sustainability of the business in the face of inflation and soaring cost of living,” Prasa said in a statement.
[ALERT] PRASA is confident that a mutually acceptable will be reached with labour on the implementation of the wage agreement pic.twitter.com/8PIRj2lVnK
— PRASA Group (@PRASA_Group) February 2, 2023
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