The United National Transport Union says it is reviewing a decision by the labour court to dismiss its urgent application to compel cash-strapped rail operator Prasa to implement a 5% wage increase that was agreed to with unions in 2020.
In October 2020, the Passenger Rail Agency of SA signed a wage deal that gave its workers a 5% salary increase each year for three years. The deal was struck with Untu, which represents the majority of the estimated 17,000 Prasa employees, and the SA Transport and Allied Workers Union . In May, Untu placed Prasa on terms to implement the second leg of the wage agreement after it failed to do so at the end of April 2021.
Prasa is among state-owned enterprises ravaged by corruption and malfeasance linked to state capture. It received a disclaimer from the auditor-general in 2019 and again in 2020 — the worst possible audit outcome.
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