Thousands of Transnet Workers Threaten Strike as Wage Talks Reach Final Stage

South Africa faces potential nationwide disruption as thousands of workers at Transnet, the state-owned rail and port company, prepare to strike if wage talks fail this week.

The United National Transport Union (UNTU), which represents over half of Transnet’s 46,000-strong workforce, has entered final negotiations through the Commission for Conciliation, Mediation and Arbitration (CCMA) on Wednesday and Thursday. The outcome could determine whether the country’s logistics sector avoids a massive blow.

“If no agreement is reached, a 48-hour strike notice will be issued,” said UNTU in a statement, signaling that its members have already voted in favor of industrial action. The union is demanding a 10% wage increase in the first year, rejecting Transnet’s offer of 6% over the next two years and 5.5% in the third. *digitis | Digital marketing for your business

By contrast, the smaller South African Transport and Allied Workers’ Union accepted the pay offer in March.

This looming strike comes at a critical time for Transnet, which is battling a legacy of corruption, ageing infrastructure, and mounting debt of over R138 billion. The company’s operational failings have hit the broader economy hard. According to the National Treasury, export disruptions at ports and on railways cost South Africa more than R400 billion in 2022 alone.

A recent World Bank study also ranks several of Transnet’s ports among the least efficient globally—yet they remain key export routes for vital commodities like coal and iron ore.

Inflation has slowed in recent months, dropping to 2.7% in March, but workers say wage increases are still necessary to make up for years of stagnant pay and rising living costs.

A full-blown strike could further undermine confidence in South Africa’s already fragile logistics system, posing challenges for exporters, manufacturers, and consumers alike.

As the country waits for the outcome of the CCMA proceedings, all eyes are on whether a deal can be struck—or if the streets will fill with workers demanding fairer pay.

{Source: The Citizen}*digitis | Digital marketing for your business

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