Labour union the United National Transport Union (UNTU) will ballot its members after a conciliation process to resolve a dispute between it and State-owned transport agency Transnet ended without agreement on April 14.

The final offer of a 6% increase in the first and second years and 5.5% in the third year took place within the context of a facilitated and transparent wage negotiation process, and in recognition that job security is essential for employee well-being and Transnet’s long-term sustainability, the State-owned entity said.

Labour union the South African Transport and Allied Workers Union accepted the offer.

“UNTU is on record as having rejected the offer and indicated it would not seek additional mandate from its members. We, therefore, welcome UNTU’s decision to ballot its members, as this will serve as a true reflection of employees’ wishes,” Transnet said in a statement.

About 20 000 Transnet employees will be eligible for the increase that took effect on April 1, 2025, it said.

Owing to the dispute lodged by UNTU, Transnet cannot extend the increase to UNTU members, which include UNTU permanent employees, fixed-term employees, employees on temporary disability and learners.

“Until UNTU and Transnet conclude a collective agreement on wages and conditions of employment, UNTU members will not receive a wage increase or any increase to medical subsidy, the housing allowance, pension fund contributions and other associated benefits,” Transnet pointed out.

Further, any wage agreement concluded with UNTU will be effective from the date of the agreement, and members will only receive an increase from that date onwards and not receive backpay.

“Transnet remains optimistic about concluding this process while it continues the business of turning the company around for the benefit of the company and the South African economy,” Transnet said.