Massive Transnet strike could bring logistics sector to its knees

The United National Transport Union (UNTU) is threatening state-owned logistics company, Transnet, with a strike that could cause significant disruptions in the sector.

UNTU has begun balloting more than 26 000 workers to consider embarking on a strike due to the failure to reach a wage increase agreement with Transnet. However, the entity remains hopeful that an agreement will be reached.

If the strike happens, it could bring the sector to its knees, costing Transnet billions in rail operations.

ALSO READ: Transnet and trade unions square up over wage demands

How much do Transnet workers want

Transnet’s biggest union said its members have shown readiness to mobilise and demand an increase that reflects the economic crisis the working class faces.

The union is demanding a 10% wage increase and housing and medical subsidies, while Transnet has put on the table a final offer of 6% this year, 6% next year, and 5.5% in 2027.

UNTU has labelled Transnet a “bully” for trying to scare its members into accepting the same wage agreement accepted by the South African Transport and Allied Workers Union (Satawu), which represents a smaller group.

Scare tactics by Transnet

UNTU said Transnet informed its members that they will not be eligible for backpay when they [UNTU] sign an agreement.

“Transnet is well aware that the issues of backpay in any wage agreement is part of the discussions to prevent looming industrial action, or end protected industrial action once it has commenced.”

UNTU added that they view this as the logistics company’s attempts to intimidate and provoke members. They have accused Transnet of undermining the union during the negotiations.

ALSO READ: Private sector welcomes next step for private rail operators

Sawatu’s agreement stands

UNTU said Transnet is adamant about selling the Sawatu agreement of 6%, 6%, and 5% over the next three years to UNTU members.

The union labels the negotiations as a ‘tick-box exercise’, as Transnet management was unwilling to consider other possible solutions, which would have had a less negative impact on the entity’s financial resources while benefiting the working class.

“If you, as a member, choose to deny yourself the right to embark on a protected industrial strike, you are giving up your right to fight for a reasonable increase and job security,” said UNTU.

Entity welcomes decision by UNTU

“Transnet is confident that it negotiated in good faith, and in the interest of the company and employees,” said the entity.

“Satawu’s acceptance of it [wage increase] took place within the context of a facilitated and transparent wage negotiations process, and to suggest otherwise is untruthful.”

Transnet said it welcomes UNTU’s decision to ballot its members, as this will truly reflect employees’ wishes.

Clap-back to UNTU

The entity said that due to the dispute lodged by UNTU, it is unable to legally extend the increase to its members. Approximately 20 000 employees will be eligible for the increase effective 1 April 2025.

“Until UNTU and Transnet conclude a collective agreement on wages and conditions of employment, UNTU members will not receive a wage increase or any increase to medical subsidy, the housing allowance, pension fund contributions and other associated benefits.

“Any wage agreement concluded with UNTU will be effective from the date of signature, which means there will be no backpay.

“Transnet remains optimistic about concluding this process while it continues to turn the company around for the benefit of the company and the South African economy.”

NOW READ: Numsa demands wage increase, night shift allowance for motor industry workers