22 August 2025
The Federation of Unions of South Africa supports its affiliate, the United National Transport Union (UNTU) as they are seeking legal opinion to review the salary and wage agreement with Passenger Rail Agency of South Africa (PRASA). This will help identify possible legal remedies should PRASA fail to implement the agreed 5.5% increment in the August payroll run. This also includes the back pay due in September 2025.
The legal opinion was requested after a letter was sent to recognised labour by PRASA’s Acting Chief Financial Officer, Brian Alexander, on 12 August 2025. In the letter, PRASA stated it may not be able to comply with the 2025/26 salary and wage collective agreement, which was signed in July 2025 under CCMA facilitation. This is quoted in the insert below:
“PRASA wishes to confirm that it is still committed to complying with the signed Agreement; however, the business is currently facing significant financial constraints and cannot meet this or potentially current obligations going forward.”
Collective bargaining outcomes should be respected, regardless of the challenges that may arise after the agreement is reached.
FEDUSA will rally behind UNTU should PRASA not uphold the wage agreement. Furthermore, we call on PRASA to remain committed to engaging in good faith with UNTU to ensure the wage agreement concluded is implemented.
END.