Transnet Faces Strike Threat as Wage Talks with Untu Reach Final Stage

Thousands of Transnet workers could down tools this week if final wage talks fail to yield results at the CCMA, the United National Transport Union (Untu) warned on Tuesday.

Untu, the biggest labour union at the embattled state-owned port and rail operator, confirmed that its members had overwhelmingly voted in favour of strike action.

Final negotiations mediated by the Commission for Conciliation, Mediation and Arbitration are set for Wednesday and Thursday.

If no agreement is reached, Untu says it will issue a 48-hour strike notice.

The union, which represents more than half of Transnet’s 46,000-strong workforce, rejected the company’s three-year wage offer of a 6% increase for the first two years and 5.5% in the third.

Instead, they’re demanding a 10% raise in year one alone.

The South African Transport and Allied Workers’ Union (Satawu), a smaller union at Transnet, accepted the offer back in March.

But with inflation at just 2.7% in March, Untu is holding the line, saying the offer doesn’t reflect the rising cost of living and poor working conditions.

The dispute comes as Transnet tries to pull itself out of a downward spiral.

Read | Transnet Looking for Operator to Run New Multi-Purpose Terminal at Durban Port

Years of corruption, theft, and neglect have left the rail and port operator struggling with ageing infrastructure and massive inefficiencies.

These issues have dragged South Africa’s coal and iron ore exports to historic lows and cost the economy over R400 billion in 2022 alone, according to the Treasury.

Transnet, carrying a whopping R138 billion debt burden, also faces global embarrassment after a World Bank study ranked its ports among the least efficient worldwide.

With tensions building and the economy already on shaky ground, all eyes are on this week’s CCMA sessions — failure could mean strike action that further cripples South Africa’s logistics lifeline.