20 Oct 2022

Industrial action at Transnet ends: Transnet takes steps to pick up the pieces

by Pauline Kumlehn, Partner, Cape Town,
Practice Area(s): Shipping & Logistics |

Just days after Transnet reached a wage agreement with its majority union (UNTU), the remaining main labour union at Transnet, SATAWU (South African Transport and Allied Workers Union), called off its strike as well, although making it clear that it did not agree with the current agreement between Transnet and UNTU.

Transnet in turn indicated on Tuesday night that it has begun implementation of recovery plans across its various operating divisions, following the 12 days of strike action.  It was reported that by Tuesday employee attendance averaged between 70% to 80%, with more employees now expected to return over the coming days.

Engagement with customers and industry role players are underway to clear backlogs.  As reported in today’s Africa Ports & News:

  • At the ports, the focus is on clearing the backlog of vessels at anchorage and alongside the quay, including bulk, breakbulk and containers.  Evacuation of imports out of the ports are also underway, to improve fluidity within the terminals.  Perishable and time-sensitive cargo enjoy immediate focus. All eight commercial ports remain accessible – Richards Bay, Durban, East London, Ngqura, Port Elizabeth, Cape Town and Saldanha.
  • On the rail side, steps are being taking to assess the safety of the railway networks, including inspection of rolling stock to ensure trains are declared safe before services and resume fully.  Concomitantly, sections of the rail network affected by theft and vandalism are being repaired.
  • Transnet Pipelines continues to transport fuel to the inland market, with steps in place to ensure security of supply.

Whilst the end of the industrial action has been welcomed, the ultimate cost to the South African economy and various sectors remains to be seen.