Transnet reaches wage agreement with its majority union
As reported in overnight media, and in today’s Africa Ports & News, there will be some relief felt across South Africa today with the announcement overnight that Transnet has reached a wage agreement with its majority union, UNTU (United National Transport Union).
This after over 10 days of strike action that led to a declaration of an event of force majeure by Transnet and has caused severe delays to various aspects of port and cargo operations of late.
While UNTU reportedly has 24,992 members which accounts for 53.9% of bargaining unit employees at Transnet, by last night still no agreement had been reached with the second union, SATAWU (SA Transport and Allied Workers Union), which in turn accounts for a substantial number of union members.
SATAWU, said to be well represented in the Durban port, indicated that its members are remaining on strike.
Whilst the announcement does provide some relief, the impact and costs are still mounting and have had a knock-on effect in various sectors, including mining and agricultural exports, services businesses and others involved in supply chains.
According to the Minerals Council South Africa the strike at the port and rail operator has had a devastating effect on bulk mineral exports, where it is reported that losses of as much as R9.8 billion were incurred by the 12th day of the strike. Particularly hard it has been shippers of iron ore, coal, chrome, ferrochrome and manganese, where its reported that losses have been about R815 million a day, given that these shippers have been unable to rail and load their exports onto ships.
Whilst the announcement has provided some relief, the impact and costs will continue to mount, and it is accordingly hoped that the impasse with SATAWU is promptly resolved.
