Fin24 reports that the Passenger Rail Agency of SA (Prasa), which is under severe financial stress, has been ordered by the Labour Court to pay employees hundreds of millions of rands for failing to honour the wage agreement in 2021.

The increase will also raise the baseline of the wage bill for 2022/23 by 5%. The increase is payable to members of the United National Transport Union (UNTU), the majority union, but Prasa will find it difficult not to extend the increase to the rest of the bargaining unit. A three-year wage agreement for 5% per annum was signed in 2020/21. In March 2021 and 2022, Prasa reneged on the increases. The court gave Prasa until 3 February to inform UNTU members of the quantum due to them. In a letter to members, UNTU general secretary Cobus van Rooyen said Prasa management had requested to meet with UNTU to discuss a payment plan. “The battle is won but the war is not over, if Prasa chooses to fight this Labour Court ruling UNTU will continue the fight with great vigour,” Van Rooyen indicated. He also said that the union planned further court action in respect of the increases for the 2022/23 year. In a statement late Thursday, Prasa advised as follows: "The Remuneration Committee chairperson, advocate Smanga Sethene, will be joined by Prasa management in a meeting with UNTU representatives in the coming week to find an amicable agreement that balances the needs of our employees and the sustainability of the business in the face of inflation and the soaring cost of living."

• Read the full original of the report in the above regard by Carol Paton at Fin24

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