LABOUR COURT RULES IN FAVOUR OF UNTU WORKERS IN PRASA WAGE AGREEMENT SAGA

JOHANNESBURG -Eyewitness Newshas it on good authority that passenger rail agency Prasa will have to pay some of its workers in the region of R10 million in a wage settlement agreement.

This comes after the Labour Court ruled in favour of the United National Transport Union (Untu), which represents close to 50% of workers at Prasa.

The union approached the court after cash-strapped Prasa reneged on its three-year wage agreement of a 5% increase per annum.

The agreement, which was signed in October 2020, was set to take effect in April the following year, but Prasa failed to pay wage increases amid financial constraints.

Prasa failed to convince the court it did not have jurisdiction to preside over the matter calling for discussions at the bargaining council.

The embattled parastatal has been given a tight deadline to honour the first portion of the agreement.

A rough estimate of close to R10 million in basic salaries for 2021 is now owed to workers affiliated to Untu, but this excludes overtime.

The court granted Untu a cost order, which means Prasa will have to pay the union's R1 million legal fees.

Sources also confirmed toEyewitness Newsthat the union planned to take Prasa back to court to compel the state-owned enterprise to pay the second portion of the agreement for the 2022 wage increases.