CERTAIN companies offered to pay an additional level on containers that could help bridge the disparity between pay demand increases and employer Transnet’s offer which is behind a rail and ports strike underway since October 6, said BusinessLive.
The United National Transport Union and the South African Transport and Allied Workers’ Union called the strike whilst discussions with Transnet, the state-owned freight and logistics company were already underway. Transnet offered up to 5% increase for the highest-paid workers, including a 1% increase in housing and medical allowances.
Transnet subsequently issued a force majeure to commodity exporters including Kumba Iron Ore which said it would lose roughly 120,000 tons a day in exports as a result.
Transnet did not say whether it accepted or rejected the offer submitted by companies. “Transnet is considering a number of options and offers from industry in order to avert a protracted strike. These will be communicated with the relevant stakeholders upon finalisation,” it said.
Busisiwe Mavuso, CEO of Business Leadership SA, told BusinessLive that the strike could further erode Transnet’s financial position and lead to more ratings downgrades.
“The strike is at very least an act of bad faith given negotiations were under way at the time and several court cases are testing its legality. It caught both Transnet and government off guard,” Mavuso said.
