BusinessLive reports that the Passenger Rail Authority of SA (Prasa) said on Monday that plans to slash staff costs by R579m this financial year would not deter it from raising pay 8%.  

Prasa has also promised workers there will be no forced retrenchments.  A strike now seems unlikely.  The SA Transport and Allied Workers’ Union (Satawu) say most of its members favour an 8% increase.  Satawu spokeswoman Zanele Sabela indicated on Monday that six of the union’s nine regions had accepted the offer, while a few outstanding matters still needed to be finalised with management this week.  Prasa’s 8% offer to its 17,000 employees in a one-year deal has raised union expectations that the agency will offer voluntary severance packages and take other steps to keep a lid on employee costs.  The United National Transport Union (Untu) said it expected to finalise its position by Tuesday.  Untu deputy general secretary Eddie de Klerk said it was still unclear how Prasa would cut costs, but the moratorium on retrenchments was tremendously important to them.

• Read this report by Karl Gernetzky in full at BusinessLive

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