Transnet strike: Ports bottleneck as wage talks enter day 3

Transnet and its recognised unions are set to reconvene on Wednesday morning for conciliation talks facilitated by the Commission for Conciliation, Mediation and Arbitration (CCMA).

Transnet is hopeful that United Transport and Allied Trade Union (Untu) and the South African Transport and Allied Workers Union (Satawu) will formally table their position to enable the company to assess its feasibility.

This while taking into account affordability and sustainability imperatives for the business, balanced with the needs of employees.

‘Speedy’ resolutions

The first day of conciliation was on Monday, which ended with parties agreeing and signing the picketing rules and sites for the current industrial action.

ALSO READ: Transnet strike ‘most appalling act of economic sabotage’

Transnet says it remains committed to a speedy resolution to the current impasse, to enable the business to focus its attention on the sustainable turnaround and improvement of operations.

Strikes from Transnet workers started last week, after employees demanded a wage increase of between 12% and 13%.

The State Owned Entity offered them a 3% increase, which unions rejected.

Transnet employs more than 50 000 people, and employee wages are its highest overhead.
Meanwhile, the Federation of Unions of South Africa (FEDUSA) said that it was in support of its affiliate, UNTU in the Transnet strike. FEDUSA said that it notes the willingness of Transnet to continue to negotiate and improve conditions in their workplaces. However, it emphasized that Transnet management needs to table offers that can be taken into consideration and that can also afford its workers to have some financial freedom.

Economic impact

Fears of bottlenecks at ports as a result of the strike loom. As is, ports are already under immense pressure with the demand from the mining sector.

The Minerals Council South Africa forecast a revenue loss of R50 billion this year for iron ore, coal, chrome, ferrochrome and manganese exporters – as measured by delivered tonnages against contracted rail volumes.

ALSO READ: Mining sector would be hardest hit by Transnet strike, says economist

It is expected that the economy will take an even heavier blow if the strikes continue.

South African Association of Ship Operations and Agents (Saasoa) told Moneyweb the protracted industrial action, comprising of around 80% of Transnet’s workforce, will cause major shipping backlogs, and cost the economy.

Saasoa CEO Peter Besnard told the publication that millions of rands worth of cargo may not end up on the shelves due to the strike. This as the festive season nears.

Transnet directors pocket millions

Alternative Information and Development Centre senior economist Dr Dick Forslund told The Citizen Transnet top executives pocketed millions in salaries and pensions.

The SOE’s low wage offer was based on a 66% cost towards a wage bill.

Forslund said 20 Transnet directors are “paid millions, with the best-paid earning R7.8 million”. This, he said, resulted in the company losing “all the moral authority to negotiate wages for ordinary workers”.

Additonal reporting by Brian Sokutu and Moneyweb.