According to the parties, the increases will be backdated to 1 April 2015.
Transnet and the recognised unions, Satawu and UNTU agreed on 7%, 7.5% and 8.25% wage increase which includes night shift and standby allowance increases for the next three years, up to 2018.
In addition, the company and the unions agreed on housing and medical aid allowances for the three-year period.
Encouragingly, the agreement will ensure that workers at Transnet share in the company's successes.
"Crucially, it allows us space to focus on the execution and implementation of our market demand strategy.
"The agreement also demonstrates that all members of the Transnet family are committed to driving a high-performance culture, and to creating a globally competitive freight transport and logistics company South Africa can be proud of.
"This agreement is confirmation that all of us agree that we need to double our efforts to improve on productivity and efficiency as we strengthen the logistics competitiveness of the country. At the same time, we will be strengthening key identified market segment supply chains," said Transnet spokesperson Mboniso Sigonyela.
With regard to job security, the parties agreed that there will be no forced retrenchment for operational reasons, throughout Transnet for the duration of the agreement. This confirms the determination by Transnet, Satawu and UNTU to ensure sustainable jobs.
On a separate agreement first-line managers, specialists and technicians (FST), who fall between management and the bargaining unit, will receive increases of 7.5% of the negotiated annual increase and the remainder will be subject to employee's performance.
"On behalf of the Board and all of us at Transnet, we wish to thank and congratulate leadership of our recognised unions for their continued efforts and partnership in ensuring a successful Transnet, and making sure our colleagues share in our victories.
"We would also like to thank all our 66,665 colleagues for their invaluable contribution and commitment to Transnet over the last year," said Sigonyela.
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