JOHANNESBURG - The Passenger Rail Agency of South Africa's financial woes look set to escalate as the United Transport and Allied Trade Union intensifies its demand for the state-owned company to pay backdated salary increases to some of its workers.
Prasa owes millions to Untu-affiliated workers for the 2021/22 financial year after reneging on a three-year wage agreement. The embattled Passenger Rail Agency was recently ordered by the Labour Court to calculate the outstanding wages and pay workers, but it's missed the deadline. Leaders of Untu have now asked authorities to hold the parastatal in contempt of court for missing the deadline.Insiders who have seen the calculations made by Prasa of the outstanding 2021 wage increases say it totals more than R100 million, which is far beyond the initial estimates.Prasa is set to meet with Untu later this month where union leaders hope to come to an agreement about the final year of the wage agreement.
It's understood Untu will approach the court again if Prasa also refuses to pay the five-percent increase for 2023 starting from April.
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