Transnet Secures Wage Agreement Averting Strike

South Africa's state ports and freight rail company, Transnet, announced on Thursday that it has secured a wage agreement with its recognized labor unions, effectively sidestepping a looming strike threat.

The agreement promises an 18% salary increase over three years, catering to unions' demands and ensuring labor stability. UNTU, the largest union, initially sought a 10% increase in a single year, contrasting with a previous 17.5% agreement accepted by the smaller SATAWU union in March.

This decision follows a period of unrest last year that disrupted commodities exports. Meanwhile, Transnet continues its reform efforts to overcome infrastructure inadequacies that hamper its operational efficiency, drawing parallels with challenges faced by the state power utility, Eskom.

(With inputs from agencies.)