A number of members of the United National Transport Union (UNTU) within Transnet have gone on strike on Thursday.
An action that is illegal, according to the state owned rail company.
In a statement on Thursday, Transnet said that it was “aware that some employees across its operations are embarking on an illegal strike action following non-resolution in the ongoing wage negotiations”.
Transnet argues that they have made “concerted” efforts to better their wage offer, despite the immense operational and financial challenges the company is facing.
TRANSNET’S OFFER
Transnet’s latest improved offer is as follows:
The company says that for levels G and H employees, the salary increase is 3%, workers on levels I and J would get an increase of 3,5%, and lastly, workers on levels K and L would see an increase of 4%.
In a statement, the company also said that “Transnet has offered an ex-gratia payment of R5000.00 (before tax) to all employees.”
ILLEGAL STRIKE
So why is this strike illegal?
Transnet argues that the actions taken by UNTU to down tools are not only illegal but also unprotected.
The rail company argued that UNTU did not follow the “operational and financial challenges”.
Transnet spokesperson Ayanda Shezi told News24: “We are assessing the impact on operations and our priority is to ensure the safety of our assets and those employees who have reported for duty. A strike is not in anybody's interest – not the workers, the company, or the economy.”
It should also be noted that another union has said that they will also down tools and go on strike on Monday.
The South African Transport and Allied Workers Union (Satawu) planned to down tools on October 10.
MAJOR IMPACT ON SA ECONOMY
The Minerals Council said Transnet had cost the mining industry R50 billion in lost opportunities in 2022.
This is mainly due to the company’s poor performance, and as a result, bulk mineral exporters have lost R35 billion in lost revenue in 2021, according to News24.
Wandile Sihlobo, the chief economist of SA Agbiz, said yesterday that “Transnet is a critical player in an export-oriented sector like agriculture.”
“So the wage negotiations are key area of interest, and we hope for a resolution that will ensure that all parties are back to work soon. We need to keep the export activity going on, and logistics are at the heart of it.”
Road Freight Association CEO Gavin Kelly said any delay or jam in the South African logistics chain would bring immediate and continuous ruin to both the credibility of the country and to the economy as a whole and that South Africa could not afford a strike in any of port, terminals or other facility which would give further cause for foreign investors to either refrain from investing or to withdraw investment.
“If Transnet operations are slowed down, delayed or terminated, the cost to the economy will be immense.”
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