Transnet and unions declare impasse over wages, strike threatened – newsdubai

Transnet announced an impasse in pay negotiations on Friday, with two unions raising the prospect of a strike that could further cripple the state-owned logistics company and affect Africa’s most advanced economy.

Transnet has been operating below capacity due to a shortage of locomotives, inadequate maintenance, vandalism and theft of its infrastructure, costing miners billions of rand in potential revenue.

In a statement, Transnet said a pay dispute had been formally declared with the South African Transport and Allied Workers Union (SATAWU) and the United National Transport Union (UNTU) following negotiations that started in May.

Transnet said the unions had rejected their offer of a 1.5% increase in staff pay, excluding medical and housing allowances.

“Their position remains unchanged from the previous rounds of wage negotiations, with a demand for a 12% increase in annual guaranteed pay as well as other demands adding up to a total increase in labor costs of 21%,” Transnet said.

UNTU general secretary Cobus van Vuuren told Reuters his union, which he said was the majority in Transnet with more than 50% of the workforce, had rejected Transnet’s offer as it was well below the rate of inflation, recorded at 7.8% year-on-year in July.

He said the formal declaration of a dispute allowed a 30-day “cooling off period” for further negotiations with Transnet.

“However, if there is no compromise reached by the parties, it will allow labor to go through a voting process where members will decide whether we can go into protected industrial action or not,” van Vuuren said.

SATAWU described Transnet’s offer as an “insult” but said it remained open to further negotiations.

“SATAWU would like to emphasize that strike is not our priority. But at present the employer is forcing us to go through that route,” it said in a statement.