PRASA, Unions Ink 5.5% Wage Deal to Secure Workforce and Stability

The Passenger Rail Agency of South Africa (PRASA) has finalized a 5.5% wage increase agreement with its recognized labour unions, reinforcing its commitment to fair labor practices and long-term organizational stability. The agreement was signed with the United National Transport Union (UNTU) and the South African Transport and Allied Workers Union (SATAWU), following a constructive dispute resolution process facilitated by the Commission for Conciliation, Mediation and Arbitration (CCMA).

The wage agreement, which applies to all bargaining unit employees, is set to be implemented in the August 2025 payroll. It represents a key milestone in PRASA’s efforts to maintain industrial peace, safeguard worker welfare, and align its human capital strategy with financial sustainability.

Commitment to Dialogue and Fair Compensation

PRASA’s Group Chief Human Capital Officer, Naledi Modibedi, welcomed the agreement as a testament to the organization's commitment to meaningful engagement with its workforce and union partners:

“This agreement affirms our ongoing commitment and willingness to engage in good faith and work collaboratively towards outcomes that support both the wellbeing of our employees and the long-term sustainability of the organization,” Modibedi said on Monday.

The agreement provides a 5.5% increase to the Total Guaranteed Package (TGP) — which includes basic salary, benefits, and allowances — for all PRASA employees falling within the bargaining unit grades. This boost aims to help workers manage the rising cost of living while keeping PRASA’s compensation structure competitive within the public transport sector.

Key Provisions of the Agreement

Beyond the salary increase, the agreement outlines several provisions intended to support employee security and foster ongoing dialogue between management and labour stakeholders. These include:

• No mandatory retrenchments: PRASA has committed not to implement forced layoffs during the term of this agreement. This measure provides job security to thousands of employees and reflects an organizational focus on retaining and investing in its workforce.

• Review of additional allowances: Non-TGP allowances will be reviewed and discussed further at the PRASA Bargaining Forum (PBF). These deliberations, also to be facilitated by the CCMA, will address concerns raised by unions around additional compensation structures, allowances, and benefits.

This structured approach to negotiations ensures that broader compensation matters can be addressed through a cooperative and transparent platform, with CCMA oversight to maintain fairness and impartiality.

Stability in a Recovery Phase

The wage agreement comes at a crucial time for PRASA, which continues to recover from years of operational, financial, and infrastructure challenges. The agency is engaged in large-scale efforts to restore its commuter rail services, modernize infrastructure, and rebuild public trust after systemic disruptions, vandalism, and service inefficiencies that escalated during the COVID-19 pandemic.

PRASA has been under increased pressure to deliver on its mandate to provide affordable, reliable passenger rail transport across South Africa’s metropolitan hubs, including Gauteng, KwaZulu-Natal, and the Western Cape. Achieving this vision requires a motivated, stable workforce and strong cooperation between labour and management.

Labour stability also plays a critical role in PRASA’s broader reform strategy, which includes:

• Infrastructure rehabilitation projects

• Rolling stock procurement and maintenance

• Station modernization and safety improvements

• Financial recovery and governance enhancement

Maintaining harmonious labour relations has been recognized as a pillar of success in these endeavors.

Union Response

Labour unions UNTU and SATAWU expressed cautious optimism about the agreement, noting that while the 5.5% increase does not fully address historical wage disparities or inflationary pressures, it represents progress in a difficult fiscal climate. Both unions emphasized the importance of continuing dialogue around job security, working conditions, and performance-based incentives.

Union representatives also applauded the CCMA’s role in facilitating a constructive process, noting that fair mediation helped avoid strike action and ensured the voices of workers were heard without disrupting vital commuter rail services.

Way Forward: Strengthening Collaboration

PRASA’s leadership believes that the latest wage deal lays the foundation for a more stable and cooperative workplace environment as the organization undertakes critical reforms. Continued collaboration with unions through the PRASA Bargaining Forum will focus on unresolved issues, including:

• Performance incentives and recognition schemes

• Uniforms and protective gear

• Overtime policies and shift scheduling

• Skills development and career progression

The agency also intends to deepen its investments in employee wellness, technical training, and health and safety, ensuring that its workforce is equipped to meet the demands of a modernized passenger rail network.

As PRASA works to restore rail infrastructure and rebuild commuter confidence, this agreement stands as a symbol of mutual respect and shared commitment to delivering safe, accessible, and efficient rail transport to millions of South Africans.