Cape Town – The United National Transport Union (UNTU) has threatened to take legal action against Passenger Rail Agency of South Africa (PRASA) over a salary agreement breach.
Following a letter from PRASA’s Acting CFO, Brian Alexander, addressed to UNTU General Secretary Cobus van Vuuren, the entity indicated that it is unlikely to comply with the 2025/26 wage collective agreement signed with recognised labour on 24 July 2025.
According to EWN, the letter SOE acknowledged the agreement, however due to complications would not be able to meet salary within the expected agreement date.
“The business is currently facing significant financial constraints and cannot meet current obligations going forward” read the letter.
PRASA said they have been raising this issue for more than a year and a half and have approached the Department of Transport and National Treasury to address operational funding challenges.
“PRASA will communicate any decision made by National Treasury timeously so that all parties are clear on the way forward. We kindly request that our social partners bear with us, as we continue to attempt to resolve this matter.”
Astatement released by UNTU said that PRASA is expected to implement a 5.5% across-the-board increase for the 2025/26 year, effective this month.
PRASA SALARY/WAGE 2025/26: UNTU IS READY TO TAKE LEGAL ACTION OVER SALARY/WAGE AGREEMENT BREACH pic.twitter.com/VKiUavJkG1
— UNTU (@HeadofficeUntu) August 13, 2025
“UNTU views this letter as a deliberate act of disrespect and disregard for collective bargaining. Once again, PRASA is demonstrating a lack of concern for blue-collar employees who have been instrumental in rebuilding the Entity from the ruins left by corruption and political interference.
“To make matters worse, this letter fails to follow correct protocol by bypassing the PRASA Bargaining Forum (PBF), indicating the Entity’s blatant disregard for established procedures and protocol,” said UNTU.
The union said that PRASA’s actions are ‘disgraceful’ and an act of ‘dishonesty,’ after allegedly agreeing with their negotiating team and labour on 24 July—under the facilitation of a Senior CCMA Commissioner—to the agreed salary/wage increment.
It recalled that in 2020, it took PRASA to the Labour Court to enforce compliance with a multi-year salary/wage agreement.
The court ruled in the union’s favour, ordering PRASA to honour the agreement and cover UNTU’s legal costs.
“UNTU will not accept PRASA’s refusal to honour a signed legal agreement.
‘If PRASA fails to implement the salary/wage agreement in its full context, covering each and every element per the agreed timelines, UNTU will enforce the agreement in its entirety through litigation, and we will do everything in our power to ensure that this collective agreement is enforced.
“PRASA will also face litigation costs, wasting South African taxpayers’ money through fruitless and wasteful expenditure once again,” said the union.
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Source: AFP
