Transnet strike day 9: Businesses on the brink of collapse

Serious concerns have been raised after hundreds of trucks were stuck in different ports across the country due to the ongoing strike by Transnet employees.

The strike, which enters day nine, has been described as more devastating than load shedding and could have immense financial consequences.

Unions rejected the latest Transnet-tabled three-year wage offer to end the ongoing strike.

The United National Transport Union (Untu) and the South African Transport and Allied Workers Union (Satawu), are demanding an increase of about 13%.

The new offer was tabled by Transnet on Wednesday following days of wage talks, facilitated by the Commission for Conciliation, Mediation, and Arbitration (CCMA), between the unions and other government officials.

The state-owned freight utility said the negotiations have been a delicate balancing act for the company — mindful not only of the affordability and sustainability of the wage increases for the business but also having a full appreciation of the current cost pressures that employees face.

Transnet spokesperson, Ayanda Shezi, said the wage offer, which would upon acceptance be effective from April 1, entails a 4,5% across-the-board increase in the current year, which will be implemented from October, a 5,3% increase in 2023/24 and a 5,3% increase in 2024/25.

However, Untu said they reject the offer labelling it a “ridiculous offer”.

“Transnet has again just juggled the numbers to make the offer look different; quite frankly it looks worse at face value. No ex-gratia payments, no shift allowance increases, no acting allowance increases, etc.
“The actual improvement in salaries of the members [considering all things] is still very far away from a Consumer Price Index (CPI)-related increase for the members,” said Cobus van Vuuren, Untu’s general secretary.

Speaking on eNCA, Satawu’s general secretary Jack Mazibuko said they also rejected the offer as it’s below the inflation rate.

Mazibuko said their members are also struggling, and the increase in petrol and food was also affecting them.

“One of the reasons why our members are so frustrated is that last year, Transnet management gave themselves a huge increase starting from R8,5 million. Now when we are negotiating with the employer, the company is claiming that it does not have money.

“Workers are the ones who are pushing production on a daily basis. These are the workers who worked even during the hardship of lockdown.”

Mazibuko said they have proposed a 7,5% increase.

Road Freight Association chief executive officer, Gavin Kelly, said there are concerns about several trucks stuck in different ports, hindering exports and imports.

Kelly said the longer the trucks stand, the greater the danger that a lot of operators would suffer financial loss, and thus possibly close.

“I’ve spoken to several companies yesterday who said they just faced many things over the last two years. There has been Covid-19, July riots, floods, protests that had led to trucks being torched, and an increase in diesel and tyre increase, and many businesses could collapse.”

The Minerals Council of South Africa also urged a speedy resolution to the strike.

The council said the strike was affecting Transnet’s rail and port network, costing the country, businesses, and the mining sector billions of rands in lost trade, taxes, and economic activity, damaging an already fragile economy.

The Minerals Council, whose members account for more than 80% of Transnet’s rail business and 50% of the group’s income, said it was concerned that the strike is damaging exports and imports, threatening not only mining companies but the country’s fragile economy at a time when 44% of people are unemployed.