26 August 2025
The Federation of Unions of South Africa (FEDUSA) strongly condemns the Passenger Rail Agency of South Africa (PRASA) for its refusal to honour the 2025/26 wage agreement signed with recognised labour, including FEDUSA affiliate the United National Transport Union (UNTU). At a meeting with unions yesterday, 25 August 2025, PRASA Group CEO Hishaam Emeran confirmed that workers will not receive the agreed 5.5% salary increase this month.
In a letter dated 12 August 2025, PRASA’s Acting Chief Financial Officer, Brian Alexander, admitted that the agency is “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.” This statement is nothing short of an abdication of responsibility and an attack on the integrity of collective bargaining.
FEDUSA is outraged that PRASA would seek to unilaterally disregard a legally binding agreement signed in good faith under CCMA facilitation. Such conduct mirrors past attempts by the employer to evade its obligations. In 2020, UNTU successfully challenged PRASA in the Labour Court over a similar breach, winning a ruling in favour of employees. Workers should not have to fight the same battle again in 2025.
FEDUSA fully supports UNTU in pursuing urgent legal action to enforce the agreement and will mobilise to ensure that PRASA honours its commitments. Collective bargaining is the foundation of workplace stability and social partnership. PRASA must reverse course immediately, pay what is due, and restore faith in the process.
FEDUSA will resist any attempt to push workers into bearing the cost of institutional failure.
END.