Transnet’s strike will continue to cripple the economy severely as thousands of employees have vowed to remain on the picket lines for the second week in a row, in spite of the company signing a three-year wage agreement with the majority workers’ union.
The state-owned freight and logistics firm signed a deal yesterday with the majority union, the United National Transport Union (Untu), to increase their wages by up to 6% for the period April 1, 2022 to March 31, 2025.
This is a remarkable feat for the union after gruelling negotiations in which the employer initially tabled 1.5% wage increases, leading to the strike.
The wage negotiations were mediated by the Commission for Conciliation, Mediation and Arbitration (CCMA).
According to the wage agreement with Untu, workers will receive a 6% increase in the basic wage for levels on the annual cost-to-company package, 5.5% in the second year, and 6% in the third year.
There will also be an increase in the medical aid subsidy, in line with the increases in the basic wage, over the duration of the agreement, beginning from October 1.
Workers will also receive an increase in the housing allowance commencing from 2023/24 and 2024/25, with back-pay for the period April 1 to September 30 paid in two tranches on November 15 and on January 16 next year.
This ends the current industrial action by Untu members with immediate effect.
As at September 30, Untu had 24 992 members, accounting for 53.9% of bargaining unit employees at Transnet.
However, employees affiliated with the South African Transport and Allied Workers Union (Satawu) have rejected the latest offer.
Satawu deputy secretary-general Anele Kiet said their members were resolute on their demand for a double-digit wage increase at Transnet.
“After consultation with all the provinces, we were mandated to reject the offer,” Kiet said.
“Our members are steadfast on double digits ... and at this point we are waiting for Transnet to come back to us.”
The strike at Transnet has seriously disrupted activity at major ports, bringing the economy to its knees and putting thousands of jobs on the line.
BerriesZA said yesterday that South Africa had lost R134 million per week because of the strike, which had crippled berry exports, putting more than 12 000 jobs in the berry industry in the Western Cape on the line.
More than 80 containers of berries destined for European markets have been sitting at the ports, and the backlog in the berry value chain will take weeks to clear.
This will result in hundreds of millions of rand in further losses for the sector as the berry industry alone was expected to contribute at least R3 billion in export revenue this season.
The citrus export season has ended, and the stone fruit season is due to start in earnest in November, making this a key time for berry exports, specifically blueberries.
BerriesZA chairperson Justice Mudge said it was imperative that the ports authority puts emergency plans in place to lessen the impact of the strike on the economy.
“These plans must also include action steps to clear the ever-growing backlogs across a range of critical industries as quickly as possible, once the strike ends,” Mudge said. “It’s clear that South African businesses need alternatives to the deeply troubled Transnet-operated ports.”
Transnet spokesperson Ayanda Shezi said the company would now be focusing on doing some catch-up work
“The company’s priority in the immediate (future) is clearing any backlogs across the port and rail system – prioritising urgent and time-sensitive cargo, and implementing recovery plans, working with industry and customers,” Shezi said.
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