The return of United National Transport Union (Untu) members to work should provoke a sigh of relief for Transnet and the battling economy.

This is according to an economist, Dawie Roodt, who said the economy had suffered badly in the past two weeks after Transnet workers downed tools.

Untu agrees to 6% three-year agreement

Roodt was speaking after Untu, which has the majority of members entered into a three-year agreement of six percent with Transnet on Monday.

Untu and the South African Transport and Allied Workers’ Union, (Satawu) were on strike for two weeks, demanding more than a 10% increase.

The state-owned transport utility, Transnet, announced on Monday that it had reached an agreement with Untu for a three-year wage deal.

Satawu says decision undermines interests of workers

On the other hand, Satawu said the decision in question not only disadvantages but correspondingly undermines the interests of the working-class and low-earning employees.

According to Transnet, the agreed deal will apply retrospectively from the first of April this year to the end of March 2025.

Transnet said the agreement includes a 6% increase in year one, a 5,5% increase in year two, and a 6% increase in year three.

The company’s priority is to clear any backlogs across the port and rail system, prioritising urgent and time-sensitive cargo, and implementing recovery plans, working with industry and customers, said Transnet.

“The agreement, which applies to all bargaining unit employees, effective from April 1, 2022, will be implemented from October 1, 2022.”

It said the increase in the medical subsidy for the 2022/23 financial year will be implemented in October 2022.

It is also believed an increase in the housing allowance will commence from years 2023/24, and 2024/25.

Transnet said back-pay for April 1, to September 30, 2022, will be paid in two tranches, three months’ back-pay on November 15, and three months’ back-pay on January 16, 2023.

“This will definitely help to decrease the backlog that was created during the strike and it will really take some time for things to be back to normal, said Roodt.”