Satawu and Untu are demanding increases of between 12% and 13.5%. Photo for illustration: iStock
With almost a week since strike action began at Transnet, wage talks between two unions are continuing on Tuesday.
Discussions involve the South African Transport and Allied Workers Union (Satawu) and the United National Transport Union (Untu), which are demanding increases of between 12% and 13.5%.
Transnet initially offered a 1.5% increase, but upped its offer to between 3% and 4%. The ports, rail and pipeline authority said it was committed to reaching amicable solutions.
Since demonstrations began, two main entrances to the company’s port, as well as Transnet’s Empangeni depot were blocked by Untu members.
Four people have been arrested and charged with public violence so far, and on Monday, Richards Bay police continued to be on high alert.
ALSO READ: Transnet strike is ‘more devastating than load shedding’
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.
“Companies that are waiting for raw material, components to manufacture goods, cars etc will have to shut down their plants and put staff on short time. All in all, a terrible scenario [for industry],” he adds.
Besnard also said it would likely take Transnet several months to recover from the strike action.
“The previous [Transnet] strike in 2010 lasted 17 days and took in the region of 7 months to clear the backlog [and] get things back to normal,” says Besnard.
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: Transnet strike costing SA ‘hundreds of millions of rands every day’
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”.
NOW READ: Mining sector would be hardest hit by Transnet strike, says economist
Updates to follow as Transnet, Untu and Satawu’s CCMA talks continue.
Compiled by Nica Richards. Additonal reporting by Brian Sokutu and Moneyweb.
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