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BL Premium reports that the majority union at the Passenger Rail Agency of SA (Prasa) says it will this week interdict the cash-strapped rail passenger operator for failing to implement a 5% wage increase that forms part of a multiyear agreement signed with unions.
The United National Transport Union (Untu) has instructed its legal team to file an urgent labour court application against the state-owned rail operator to compel it to pay the 5% salary increase. In October 2020, Prasa signed a wage deal with Untu and the SA Transport and Allied Workers Union (Satawu) that gave its workers a 5% salary increase each year for three years. Untu general secretary Steve Harris said they placed Prasa on terms to pay the increase after it failed to do so at the end of April 2021. “Untu placed its urgent application on hold after Prasa CEO Zolani Matthews gave the leadership of the union the undertaking to pay during a [recent] meeting, but pleaded for time to sort out challenges with the department of transport and with the Treasury,” Harris reported. “The initial extension was given until May 7 2021, but Prasa once again asked the union to bear with them. Prasa is playing for time, while the Treasury seems to believe that it is above the law and can simply ignore collective agreements parties entered into,” Harris added. Untu spokesperson Sonja Carstens said they expected to serve Prasa with court papers by Wednesday at the latest
- Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (paywall access only)
Get other news reports at the SA Labour News home page