Feedback: UNTU'S Writ Of Execution Leads To PRASA'S Latest Payment Offer On The 2020 Salary/Wage Agreement

The attorneys of the United National Transport Union (UNTU) have once again received written correspondence from PRASA’s attorneys indicating PRASA’s commitment to partially meet their obligation to the employees due to their failure to honour the 2020 Salary/Wage Agreement.

PRASA has offered to pay a lump sum of R100 million toward the wages/salaries owed to employees for the second year of the agreement by the end of May 2023. This offer is a result of the execution of the writ received by UNTU from the Labor Court regarding the money owed to the employees. It seems that the threat of having their assets attached, removed, and sold has given PRASA renewed assurance that UNTU is serious about ensuring that the employees receive their owed payment.

PRASA’s latest offer, extended through their legal team to UNTU’s legal team, involves the payment of R100 million in lieu of the owed increases to UNTU members and other PRASA employees by the end of May 2023. Of the R100 million, R57 million will be paid proportionally to UNTU members, and the remainder will be paid proportionally to all PRASA employees.

Discussions are still ongoing between the legal representatives regarding peripheral issues not covered in PRASA’s offer, including the addressing of Pension Fund contributions, the increase in Pension Fund contributions as per the agreement, proportional calculations of the payments, expected deductions from the lump sum amounts, and other matters requiring clarification.

UNTU has clearly indicated to PRASA that the writ of execution will not be withdrawn. It will be put in obeyance as long as PRASA adheres to the payment plan outlined in their newest proposal. However, if PRASA fails to comply with the payment plan, UNTU will reinstate the writ of execution and continue with the sale of PRASA assets.

The acceptance of this payment plan is subject to the questions raised by UNTU’s leadership, the responses received from PRASA, and PRASA’s adherence to the newest payment proposal.

UNTU believes that a speedy resolution to this matter will benefit its members and employees. Selling the attached PRASA assets to recover the owed millions could be a lengthy process that would not provide immediate benefits to members and other PRASA employees.

UNTU acknowledges PRASA’s history of negotiating in bad faith but assures all UNTU members and other PRASA employees that they will not abandon the writ of execution until every cent owed is paid. If PRASA fails to honour the payment agreement, UNTU will continue attaching and removing PRASA’s moveable assets. Additionally, further discussions between PRASA and UNTU will take place in the second week of June 2023 after the lump sum payment has been made. If the lump sum is not paid by the end of May 2023, the writ of execution will progress further.

Fighting injustices affecting workers has always been UNTU’s top priority. While the Labor Court ruled that PRASA should pay UNTU members only, the legal battle will benefit all employees, ensuring justice for those who have faced difficult times over the past two years.

Furthermore, UNTU has already initiated the same process for the third year of the wage/salary agreement. Members will be updated on further developments regarding this matter.