Transnet strike

Richards Bay police continue to monitor the ongoing strike action by Transnet workers with officers stationed on Medway Road in Richards Bay and at the Port ...

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Industrial action at South Africa's ports and freight-rail operator Transnet is set to worsen as the second-largest labor union, the South African Transport ...

“The ongoing impasse between recognised unions and Transnet is devastating to the economy, much worse even than the ongoing energy crisis,” warning that logistics delays could hit the economy by up to $56m per day. The two unions last week turned down Transnet’s offer of a 3% to 4% wage rise, saying it was below South Africa’s annual inflation rate, which was 7.6% in August. The South African Association of Freight Forwarders also joined the call for the urgent resolution of the wage negotiations to maintain the supply chains.

Please find attached a soundbite by Ghaleb Cachalia MP. The SA Transport and Allied Workers Union (Satawu) is threatening to paralyse Transnet when its 21 000 ...

Failure to do so, will set a bad precedent and embolden unions that have shown gross disregard for the general health of the South African economy. In addition to posing a threat to infrastructure, the wildcat strike by Transnet workers poses a significant risk to export oriented industries in agriculture and mining. Instead of reigning in its errant members, the unions have chosen to escalate the situation by issuing threats to paralyse Transnet.

Industry may need to turn to alternative ways of transporting product, and as a result lose its current rail and ports position – Seifsa COO Tafadzwa ...

Putting it on road to get it to the furnaces on a unit-cost basis is much more expensive, so already that feeds into costs which eat into competitiveness. The risk, though – and I think you made a the point – the risk here is that once that route is being utilised and entrenched, it’s actually often very difficult to get it back. Of course, they’re a lot more aggravated right now as a result of the strike, but I know that Transnet had potentially been losing out to other port operators on the continent, part of those contingency plans you’re talking about being companies using alternative routes, using alternative ports on the continent, while Transnet was going through the moves … And has any change had to happen just as a result of the force majeure that Transnet has declared? I think one way to elaborate that point – that we are not being alarmist at all – is that if you consider that South Africa’s GDP is pretty much 60% determined by trade, and I’m talking both imports and exports there, that 60% of the country’s GDP in one form or another is influenced by exports and imports. I just want to know, for those who may think that Seifsa is potentially being alarmist in likening the Transnet strike and the impact on exports and imports to load shedding, why do you think that the two events could be similar in terms of the economic damage to South Africa? For example, if you are running a large furnace like our members do when they make steel, you need a consistent and constant supply of iron-ore coking coal to come to your furnace, because this is not a machine that you can just switch off. Any challenges faced on the upstream trickle down to the rest of the sector. These are complicated value chains getting products left, right, and centre across the country and internationally, and a break in that chain has dire economic consequences. So in essence that means that a dent in that process in which Transnet is a big player, has real economic consequences. But Kumba Iron Ore came out with a statement to say that it will cause a bit of pain on its exports. It is causing a bit of pain.

Transnet's application to interdict a strike by members of the SA Transport and Allied Workers Union (Satawu) has been thrown out by the labour court.

The South African Association of Ship Operations and Agents (Saasoa) says any protracted industrial action by Transnet employees could see plant shutdowns ...

In fact, the unintended consequences of this strike could have far-reaching implications for the country’s economy as a whole,” she notes. Read: “According to the SA Revenue Service approximately R343 billion worth of goods were imported and exported by South Africa during the month of August alone and of this 70% of goods were processed via the ports,” she says. “Already, shipping lines are calling our ports less frequently due to the inefficiencies of our ports, and this strike may result in the continued acceleration of this concerning trend. “Over 127 000 people in formal employment in the Western Cape owe their livelihood to products exported through the Port of Cape Town, according to research conducted by the Western Cape Department of Economic Development and Tourism,” says CCCI President Jacques Moolman. “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 Transnet wage strike could be the "final nail in the coffin" for an already limping South African economy, if the wage dispute is not swiftly addressed, ...

These groups have warned that the economic impact could be worse than the Covid-19 national lockdown or at least as bad as load shedding if it were allowed to hobble port activity. Satawu is demanding a 12% increase across the board while UNTU demands 13.5%. In recent years, the South African economy has already been rocked by Covid-19, stubbornly high unemployment, the damage of last year's unrest, flooding in KwaZulu-Natal earlier this year, and the longest and most severe spate of load shedding on record.

Transnet has been offering hikes of between 3% and 4%, while unions want a more inflation-related increase.

The current strike by Transnet workers is set to be a further blow for our fragile economy." Transnet has been offering hikes of between 3% and 4%, while unions want a more inflation-related increase. Unions and Transnet met at the CCMA on Monday but there has been no breakthrough in the wage talks.

The crippling strike by tens of thousands of Transnet employees could deteriorate into full-blown industrial action as the employer and workers are still ...

Transnet having already declared force majeure, we appeal for a constructive approach that seeks to advance the interests of our country.” “A full-blown strike at Transnet, will add to the damage suffered by the South African economy. There are also further legal options including declaring port workers to be essential workers,” Mavuso said. “The century-old idea that the state needs to be at the centre of key network industries in South Africa is fading but needs to be put to bed once and for all.” The impasse could see the South African economy shrink even further in the fourth quarter instead of rebounding as imports and exports operations at major ports grind to a halt. The crippling strike by tens of thousands of Transnet employees could deteriorate into a full-blown industrial action as the employer and workers are still far apart in their salary negotiations.

JOHANNESBURG - Transnet workers are standing by their demands for a wage increase of between 12 and 13 percent. They have not been working since last week.

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Transnet said it would reconvene negotiations with unions amid a wage strike by UNTU and Satawu on Wednesday. Minister of Employment and Labour Thulas Nxesi ...

The parties to the negotiations are considering alternative proposals and will reconvene on Wednesday, 12 October 2022 to take the process forward," the statement said. The bulk and break-bulk terminals are activating business continuity plans to ensure operations are minimally impacted by the illegal strike action," said Van Buren Schele. While Cape Town's multi-purpose terminal had 13% manning levels, there were no vessels outside on Monday and five fishing vessels were berthing. Durban's agri-terminal had 10% manning levels and one vessel berthing. Saldanha's iron ore terminal had 10% manning levels with three vessels outside and two vessels berthing while the Saldanha multi-purpose terminal had 13% manning levels with two vessels berthing. The Durban multi-purpose terminal had 12.5% manning levels with two vessels outside and two vessels berthing on Monday.

Busa, BLSA and Durban Chamber of Business act in an effort to resolve the deadlock in talks with unions.