Transnet Strikes Wage Deal with Unions, Averting Major Strike Action

Transnet SOC Ltd has averted a potential national strike after finally reaching a hard-fought wage agreement with its recognised unions, UNTU and SATAWU. The state-owned logistics giant confirmed on Thursday that the deal includes an 18% salary increase spread over three years, bringing to an end months of tense back-and-forth negotiations.

The deal means Transnet employees will receive 6% annual increases until March 2028, with backpay to April 2025 for UNTU members and a no-retrenchment clause, a key victory for the United National Transport Union (UNTU), which represents more than 26,000 workers at the company.

UNTU had previously demanded a 10% single-year increase, holding firm even after SATAWU settled for a 17.5% deal in March. Thursday’s announcement confirms that a final collective agreement has now been signed in the Transnet Bargaining Council, applicable to all bargaining unit employees from grade G to L, whether unionised or not.

In a jubilant statement to its members, UNTU called the agreement “a win for the working class,” thanking workers for their patience and confirming that backdated pay, housing allowances, medical subsidies, and acting allowances will be settled in two tranches – on 27 June and 25 July 2025.

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Transnet says the deal provides much-needed labour stability:

“This agreement enables the company to focus on its immediate strategic priorities of improving operational and financial performance,” it said.

The agreement comes as Transnet faces intense pressure to reform its ailing freight rail and port operations, which have been plagued by equipment shortages, backlogs, and inefficiency—factors dragging down South Africa’s economic growth.

The last major strike in 2022 severely disrupted key exports including coal, minerals, and perishables. This time, cooler heads have prevailed—good news for the economy, and even better news for workers.