By Lehlohonolo Lehana.
The SA Transport and Allied Workers Union (Satawu) plans a major strike action on Monday unless a new wage deal is struck with Transnet, the state-owned transport and logistics group.
Satawu, along with the United National Transport Union (Untu), have already rejected an initial 1.5% offer and a revised offer of 4% and promise “to plunge Transnet into industrial action that could have serious repercussions for the economy,” reports the Sunday Times.
The unions said that the offer must be aligned with the rising cost of living and current inflation. Annual inflation in South Africa is currently 7.6%.
The strike action threatens to curb trade in materials including coal, iron ore, chrome and manganese because the company’s rail and ports network is key to South African exports of bulk commodities.
The South African ports are also crucial for shippers from other African nations, it said.
Transnet moved to declare a force majeure at its ports in anticipation of some of its operations being “scaled down,” the state-owned company said in a notice to its customers.
“To the extent possible, we will attend to invoke contingency plans and source external stand-in/temporary resources to ensure that the operations continue across the various terminals.”
As a full-blown strike seems unavoidable at this stage, Transnet warned a strike would have a serious effect on the economy and implored the unions to reconsider.
“Fruit exporters have pleaded with the government to intervene as a strike would halt exports and put thousands of jobs on the line.”
On Monday, the parties will meet at the Commission for Conciliation Mediation and Arbitration (CCMA), which has been brought in to try to broker a solution through meditation.
Satawu said it will not accept anything below two digits but is still open to talks.
“We have served Transnet with a 48-hour notice of our intention to strike, and our strike starts Monday. The company requested a meeting with us last Tuesday, where they tabled their so-called revised offer of 4%. This offer is divided into two — a 3% across the board increase and one percent in the form of a lump sum equivalent to R7,600, “secretary-general Jack Mazibuko said.
“We took this offer to our members for a mandate, but it was strongly rejected, and that’s why we are here now.”
Mazibuko said that employees at Transnet Freight Rail, including all ports in the country, security, pipelines, train drivers, and operations will be on strike come Monday.
He said Satawu received a letter from the CCMA requesting a meeting to try to find a solution and avert the strike, which will also severely disrupt key mineral exports.
“We will be attending that meeting, but we want to remind the CCMA that they don’t have the power to take away workers’ rights to embark on a strike. We are asking for 13.5%, but we are prepared to accept from 10% — not anything below double-digit, no,” said Mazibuko.
And acting minister of Public Service and Administration (DPSA), Thulas Nxesi and finance minister Enoch Godongwana believe that a 3% salary increase offered to public servants is “generous”.
This as a deadlock persists in wage negotiations with labour unions. The ministers said the current round of negotiations commenced with the government.
Government, they said, is grappling with a “balancing act” between wage increases and additional headcounts, saying “there’s always competition” between the two.