TRANSNET'S GENEROUS WAGE OFFER REMAINS ON THE TABLE, May 11 2010

Transnet has tabled a generous and fair wage increase offer, providing for an 11% increase on all pensionable earnings for our non‐managerial staff. The offer, which is twice the rate of inflation, puts significant cash into the pockets of our employees.

We believe our bargaining sector have to be given space and time to seriously consider management's offer which is amongst the highest by South African standards.

Over the last five years, Transnet has consistently paid fair and market‐related wages and offered above‐inflation wage increases to its employees. Last year, we agreed a 6.95% wage increase and protected jobs.

Transnet's offer at 11.28% cost to company is at the limit of affordability and reasonableness, and was made as a progressive move to avoid a strike.

The company is deeply concerned at the levels of violence and intimidation that have accompanied the strike, and welcomes the Labour Court's decision today, ordering trade union, Satawu, to stop the use of violence.

Transnet had sought relief from the Labour Court on Monday (May 10 2010) after several incidents of violence intended to intimidate non‐striking employees by members of Satawu.

Once more, we would like to urge the unions to act responsibly and respect the rights and property of fellow employees, suppliers and customers.

According to Transnet's recognition agreement, the unions are responsible for discipline and order during a strike. Picketing rules have been agreed between management and Satawu in all regions.

Management is now focusing its energy on protecting Transnet's business, its assets and people, and we are doing everything possible to move strategic freight for our customers. It is imperative that we continue to act in the best interests of the company and the country.

Statement issued on behalf of Transnet Limited by John Dludlu, Spokesman for Transnet Limited, May 11 2010

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