FEDUSA defends Transnet wage deal against Business Leadership South Africa's criticism
The Federation of Unions of South Africa (FEDUSA) has condemned what it calls a “reckless and dishonest attack” by Business Leadership South Africa (BLSA) on the recent Transnet wage agreement, saying business elites are attempting to scapegoat workers for deep-rooted failures within the state-owned logistics company.
FEDUSA was responding to BLSA chairperson Busisiwe Mavuso’s comments labelling the wage settlement a “leadership failure.” The agreement, reached between Transnet and recognised unions United National Transport Union (UNTU) and South African Transport and Allied Workers’ Union (SATAWU), includes a 6% annual increase over three years, totalling an 18% rise in wages.
“BLSA’s characterisation of the hard-won wage settlement as a ‘leadership failure’ is not only absurd, but also a direct attack on the constitutional rights of workers to organise, bargain collectively, and demand just and equitable treatment from employers,” FEDUSA said in a statement on Saturday.
The union federation defended the wage hike, saying it was secured through legal processes, with no strike action, and offered both “fiscal restraint and a measure of justice.”
“Transnet workers, led by UNTU and other unions, exercised their rights under South Africa’s labour laws. They rejected below-inflation offers that would have entrenched poverty wages and job insecurity,” said FEDUSA.
Transnet said the agreement was reached after conciliation at the Commission for Conciliation, Mediation and Arbitration (CCMA) and thanked all stakeholders involved. “The finalisation of the three-year wage agreement provides labour stability and will enable the company to focus on its immediate strategic priorities of improving operational and financial performance, while positioning the organisation for future growth,” it stated.
FEDUSA rejected assertions that the wage deal would hamper economic recovery, instead blaming “executive corruption, mismanagement of public entities, poor governance, and a refusal by the business elite to invest in inclusive, labour-intensive growth” for South Africa’s economic challenges.
“BLSA and other private sector commentators must stop masquerading their disdain for collective bargaining as concern for economic stability. Their real fear is the growing strength of organised labour and the possibility of a more equal distribution of power and resources in our economy,” the federation said.
FEDUSA concluded by urging Transnet to fully implement the terms of the agreement, warning: “Workers will not be silenced, scapegoated or sacrificed.”