In a major development aimed at preserving organisational stability and fostering labour peace, the Passenger Rail Agency of South Africa (PRASA) has signed a landmark wage agreement with key transport unions, signalling renewed confidence in the state-owned rail operator’s employee relations.
Following weeks of negotiations mediated by the Commission for Conciliation, Mediation and Arbitration (CCMA), PRASA reached consensus with the United National Transport Union (UNTU) and the South African Transport and Allied Workers Union (SATAWU) on a 5.5% salary increase for all bargaining grade employees.
The agreement, which is effective from August 2025, applies to the Total Guaranteed Package (TGP) and reaffirms PRASA’s commitment to maintaining a sustainable and worker-centered operational framework.
“This agreement affirms our ongoing commitment and willingness to engage in good faith and work collaboratively towards outcomes that support both the wellbeing of our employees and the long-term sustainability of the organisation,” said Naledi Modibedi, PRASA Group Chief Human Capital Officer.
Key Terms of the Wage Agreement:
- 5.5% salary increase on TGP effective in the August 2025 payroll.
- No mandatory retrenchments will be undertaken during the duration of this agreement.
- Further discussions on allowances outside the TGP will be referred to the PRASA Bargaining Forum (PBF), with facilitation by the CCMA.
The deal comes at a pivotal time for PRASA, which has been under pressure to rebuild public trust following years of operational disruption, financial instability, and governance concerns. Labour stability is seen as a cornerstone of the agency’s broader reform agenda under the Department of Transport.
Public transport analysts say the agreement may signal a shift in the organisation’s labour relations approach from adversarial stand-offs to structured, consultative engagement.
“Avoiding retrenchments while granting a real-terms wage increase reflects PRASA’s desire to be seen as a responsible employer amid fiscal constraints,” noted a labour law expert from the University of Johannesburg.
As PRASA works to restore and modernise rail infrastructure, ensure commuter safety, and improve reliability particularly in high-demand corridors like Gauteng and the Western Cape, this agreement is expected to have ripple effects on service delivery.
With rail transport seen as a critical economic enabler and a backbone of affordable mobility for millions, labour peace is essential. PRASA’s commitment to non-retrenchment during this wage cycle may also inspire confidence among employees weary of job insecurity during prior organizational restructurings.
