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Our CL/Wage.Neg.002.20 dated 25 March 2010 refers.
On 24 March 2010 we were fairly optimistic when Management eventually made an offer of 6% as was presented in the above circular letter. However after 2 further frustrating days of caucuses and no seriousness in negotiations from management Labour had no alternative but to declare a dispute.
The negotiations dead locked, although Labour had repeatedly informed Management we would review our across the board demand for 20% if Management seriously improved their offer more specifically on the 6% across the board offer, the implementation date, the willingness to negotiate on incentive bonus and appoint all contract workers.
At the time of the declaration of our dispute Labours demand and Managements offer was as follows:- Please note that Managements offer specifically on the other matters than the across the Board offer has decreased compared to their initial offer. Such as the overtime ceiling exc.
1. LABOUR DEMANDS:- 18% across the board increase ( ATB) effective from 1 April 2010.
RESPONSE FROM MANAGEMENT
6,5% (ATB) .
2. LABOUR DEMANDS:- Clause 21.3 of the FST Agreement – All allowances to be increased by the ATB increase
RESPONSE FROM MANAGEMENT
Will comply with the agreement.
3. LABOUR DEMANDS:- Overtime ceiling to be increased by ATB (except Pipelines)
RESPONSE FROM MANAGEMENT
Overtime ceiling to be capped at current sclaes p.a
Transnet Pipelines: The current employees retain the current payments but all new employees to be capped at R149736 p.a
4. LABOUR DEMANDS:- R15 per hour nightshift allowance (except Pipelines)
RESPONSE FROM MANAGEMENT
Current amounts paid to continue - no increase.
5. LABOUR DEMANDS:- R80 per day standby allowance for all OD’s (except Pipelines).
RESPONSE FROM MANAGEMENT
Current amounts to continue - no increase.
6. LABOUR DEMANDS:- Housing allowance to be increased to a flat rate of R2000 pm
RESPONSE FROM MANAGEMENT
Current minima and maxima rules to continue - no increase
7. LABOUR DEMANDS:- Medical Aid allowance to all employees to be increase to R2000 pm
RESPONSE FROM MANAGEMENT
This matter is in dispute and subsidy is linked to compulsory Transmed membership.
The current minima and maxima to continue - no increase
8. LABOUR DEMANDS:- Maternity equivalent of 4 months with full pay be implemented and fixed term contract workers to be eligible for same.
RESPONSE FROM MANAGEMENT
Maternity Leave status quo to remain – 3 months full pay.
9. LABOUR DEMANDS:- Paternity leave:10 days paid paternity leave
RESPONSE FROM MANAGEMENT
Paternity leave can be taken as part of the 5 day family responsibility leave.
10.LABOUR DEMANDS:- Subsistence allowance of R70 per day to be paid in all ODs (to be paid in advance)
RESPONSE FROM MANAGEMENT
R65,00 for all Operating Divisions, and no receipts are required.
11.LABOUR DEMANDS:- Incentive bonus to be renegotiated to ensure fairer distribution of the gain share. Currently 49% of the Gain Share is paid to Junior Employees, Bargaining Unit (± 45 000)
employees, whilst 51% of the Gain Share is paid to Management (± 4 500) employees.
RESPONSE FROM MANAGEMENT
Yes, prepared to enter discussions for bargaining forum employees only, but an agreement
is to be reached in which forum these discussions will take place and not willing to negotiate only to consult.
12.LABOUR DEMANDS:- All fixed term contract workers to be immediately employed on a permanent basis (and wages are to be aligned)
RESPONSE FROM MANAGEMENT
This is informed by business needs and will be discussed as business requires.
Transnet Capital Projects the business model is under review at a strategic level and once
these discussions are finalized, Management will continue to discuss the process to be followed with Labour.
13.LABOUR DEMANDS:- No forced retrenchments during this financial year (2010/2011)
RESPONSE FROM MANAGEMENT
Not willing to entertain Labour's demand as the economy is to volatile.
14. LABOUR DEMANDS:- Implementation date 1 April 2010
RESPONSE FROM MANAGEMENT
Management stated if an agreement is reached on or before 14 May 2010 the implementation will be back dated. However if an agreement is reached after 14 May 2010, due to a upgrade on the SAP system being implemented, implementation will be from the 1ste of the month following the date of signature.
Labour requested Management to supply us with the costing of Managements initial, offer on 24 March 2010 versus the costing of their offer on 26 March 2010. However Managements response was that they would have to go and calculate the costing their off.
Clearly if Management was serious about their offer, in your own belief as a Management team you would have costed the offer, to at least show seriousness in the Bargaining process.
It is once again clear taking cognizance of the incentive bonus situation where 9,01% of the workforce being Managers receive a whopping 51% of the Incentive bonus share of R950 million versus 90,09% of the workforce having to share in 49% of R950 million that employees have no importance in Transnet. Remember the 90,09% (45121) of the workforce being the Bargaining Unit employees are really and truly the employees that ensure that the operation of Transnet functions and that targets are achieved.
Taking cognizance of the above then one wonders are Management serious when they state that employees are an important asset of Transnet ?
We leave that Question in your minds.
The process going forward.
The 12th of April 2010 was set as the following date to continue with Negotiations however taking note of the fact that Labour has declared a dispute, we hope that a suitable conciliator could be agreed to by the parties to conciliate on the dispute on the 12th of April 2010.
Should the conciliation process fail and Labour and Management do not reach consensus on a reasonable wage offer that Labour believe our members would seriously consider we will have no option but to ask the conciliator for a certificate of non resolution and then our members would have to seriously consider strike action as this will be the only option to follow.
Be assured that we have and will continue to strive for the best possible solution in the process and trust that we will receive your continuous support in these very difficult negotiations.
Members will be kept informed as the process unfolds.
VIVA LABOUR VIVA.
UTATU Greetings.
STEVE HARRIS
GENERAL SECRETARY
29/3/10
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