(Reuters) -South African state ports and freight rail company Transnet said on Thursday that it had reached a wage agreement with its recognised labour unions.
The deal is for a 18% salary increase over three years and averts the risk of a strike, which its majority union UNTU had threatened.
"The finalisation of the three-year wage agreement provides labour stability and will enable the company to focus on its immediate strategic priorities of improving operational and financial performance," Transnet said in a statement.
UNTU had previously held out for a 10% wage increase and a single-year agreement, while smaller union SATAWU in March agreed to a 17.5% deal spread over three years.
The last time there was a major strike at Transnet, in 2022, it affected commodities exports, including fresh produce and minerals, from Africa's biggest economy.
The government has been trying to reform Transnet to make it more efficient.
The company has struggled to provide adequate freight rail and port services because of equipment shortages and maintenance backlogs after years of under-investment, holding back economic growth in a similar way to state power utility Eskom.
($1 = 17.7789 rand)
(Reporting by Alexander Winning;Additional reporting by Sfundo Parakozov;Editing by Elaine Hardcastle and Aurora Ellis)
