Transnet employees back to work: but here’s how much the strike cost us

The Mineral Council for South Africa has estimated that bulk mineral exporters were losing R815 million worth of exports per day, due to the Transnet strike.

Mineral exporters were unable to rail and load 357,000 tonnes of iron ore, coal, chrome, ferrochrome and manganese onto ships daily.

But seeing that the strikes lasted over 10 days, the total loss is around R8,9 billion.  

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“On average, South Africa exports about 476,000 tonnes of bulk minerals a day worth R1.06 billion. We estimate that just 120,000 tonnes of minerals worth R261 million are being exported daily.

“Major mineral export harbours are operating at between 12% and 30% of their daily averages,” the council said in a statement.

Meanwhile, according to BerriesZA, South Africa’s berry industry lost around R134 million a week.

Back to Work

Taking into account these massive losses the country was incurring the strike ultimately crippled the already ailing local economy even further.

Transnet reported earlier this week that it had reached a three-year wage agreement with the majority union the United National Transport Union (Untu), representing 53% (around 24 992) of the transport employees.  

The newly signed wage agreement, applicable for the period 1 April 2022 to 31 March 2025, includes a 6% increase in year one, a 5.5% increase in year two, and a 6% increase in year three, ending the industrial action at least one union with immediate effect.

ALSO READ: Satawu calls off Transnet strike as members want to return to their posts

SATAWU feels betrayed but doing its part

Meanwhile, the South African Transport and Allied Workers Union (Satawu) which represents a third of Transnet employees have refused to sign the existing agreement calling it a betrayed by Untu.

“Let us clear the confusion. We did not sign any agreement. What we have done is called off the strike action and asked people to return to work. We are still engaging with Transnet,” said Satawu general secretary Jack Mazibuko.

Mazibuko said while their members are back at work as of Thursday 20 October 2022, the fight for an above-inflation increase would continue.

In a statement, Transnet said that the company’s immediate priority is clearing backlogs across the port and rail system – prioritising urgent and time-sensitive cargo, and implementing recovery plans, working with industry and customers.

Recovery plan

Transnet confirmed that it has begun with the implementation of recovery plans across its operations, as the company resumes operations following 12 days of industrial action. 

It also confirmed that employee attendance is up across the board, averaging between 70% and 80%, with more employees expected to return over the next two days. 

“On the rail side, trolley trips are being undertaken to assess the safety of the railway network, as well as inspection of rolling stock to ensure trains are declared safe before services resume fully.

“Repairs to sections of the network affected by theft and vandalism are also being undertaken,” Transnet said in its statement.

Meanwhile, engagements with customers and industry are ongoing, with joint planning to clear backlogs created as a result of the industrial action. 

 “At the ports, the focus remains on clearing the backlog of vessels at anchorage and alongside the quarry, including bulk, break bulk and containers.

“Evacuation of imports out of the port is underway, in order to create fluidity within the terminals, with the immediate focus being on perishable and time-sensitive cargo. All eight commercial ports remain accessible.

“Transnet Pipelines continues to transport fuel to the inland market, with contingencies in place to ensure the security of supply.  Any further updates will be communicated in due course,” the statement concluded.

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