An agreement has been reached between Transnet Freight Rail, the South African Transport and Allied Workers' Union and the United Transport and Allied Trade Union on how to manage costs, the parastal said on Thursday.

At a meeting on Wednesday, both parties "cleared up misconceptions" that management was going to unilaterally implement a number of measures aimed at managing costs, Transnet said in a statement.

"All efforts will be made by management and staff to ensure that there are no service disruptions and that employees are not adversely affected by the current economic climate," said Transnet Rail Freight human capital general manager Tumelo Mokwena.

Measures agreed to included limiting overtime, a moratorium on the filling of new vacancies and a moratorium on travel.

"Both parties agreed that retrenchments are only to be considered as a last resort," Transnet said.

The parties had also agreed that there would be no service disruptions.

"The gains we have made will be consolidated to ensure that this company continues on the path it has been journeying and ensure customer needs are met at the highest levels of service possible within the constraints that we find ourselves in", said Transnet Freight Rail's chief executive, Siyabonga Gama.