You are currently viewing SATAWU Rejects PRASA’s 5% Final Offer
Passenger Rail Agency of South Africa (PRASA)

SATAWU Rejects PRASA’s 5% Final Offer

  • Post author:
  • Post last modified:

SATAWU Rejects PRASA’s 5% Final Offer

  • SATAWU has formally rejected PRASA Management’s 5% final wage offer for the 2026/27 financial year, describing it as inadequate and not reflective of industry benchmarks.

Key Reasons for Rejection

1. Deferred Allowances Ignored

  • Management’s proposal includes no adjustments to allowances, despite previous agreements that these items would be negotiated separately.
  • Affected allowances include:
    • Night Shift Allowance
    • MLPS Book-Off Allowance
    • Standby Allowance

2. Benchmarking Concerns

  • SATAWU argues that PRASA’s offer falls below recent settlements achieved elsewhere.
  • Examples cited include:
    • SARS: 5.5%
    • Denel: 5.5%
  • The union also questions the absence of comparative benchmarking against Transnet.

3. Backpay Must Be Guaranteed

  • Workers are owed backdated salary increases effective from 1 April 2026.
  • SATAWU insists that backpay must be paid as a guaranteed lump sum and not be subject to future consideration or payment plans.

4. Medical Aid and Health Concerns

  • SATAWU says management’s medical aid proposals lack clear implementation dates, subsidy commitments, and affordability measures.
  • The union further opposes the continued use of supply chain processes for medical aid procurement, arguing that organised labour must play a leading role in the process.

Call for Meaningful Negotiations

  • SATAWU remains committed to constructive engagement.
  • The union has requested time to consult members across regions and has called on PRASA Management to return with:
    • An improved salary offer.
    • Meaningful negotiations on deferred allowances.
    • Clear commitments on medical aid and worker benefits.

“Labour remains open to resolving this dispute constructively. However, we will not sacrifice the livelihood of workers to absorb operational shortfalls caused by systemic management challenges.”