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- Transnet said it revised its offer to striking unions to a three-year deal, including a 4.5% increase across the board in the first year.
- Business said that if the strike were not resolved, and ports not cleared, there would be a rise in the inflation pressures South Africans are already facing.
- It is estimated that the strike could cost the SA economy around R1 billion per day.
- For more finance news, go to the News24 Business front page.
Transnet tabled a revised three-year wage offer to the South African Transport and Allied Workers Union (Satawu) and the United National Transport Union (UNTU) on Wednesday.
The offer to the striking unions was made during wage talks facilitated by the Commission for Conciliation, Mediation, and Arbitration (CCMA).
It includes a 4.5% across-the-board increase in the current year, a 5.3% across-the-board increase in 2023/24, a 5.3% across-the-board increase in 2024/25, and a 4.5% increase in the medical aid allowance in 2022/23 to be adjusted in subsequent years in line with the increase.
"The back pay will be paid in two tranches – three months' back pay on 15 November 2022, and three months' back pay on 16 January 2023. Whilst the parties have not settled on this offer, engagements are ongoing. We would like to thank all stakeholders for their continued understanding and support during this process," Transnet said in a statement.
READ | Transnet insists strike over wages is unprotected, unions vow to continue picketing
"The negotiations have been a delicate balancing act for the company – mindful not only of the affordability and sustainability of the wage increases for the business but also having full appreciation of the cost pressures that employees face currently".
In a statement rejecting Transnet's previous 4.5% to 5% offer, Satawu said: "If the group CEO of the entity can take home R8.9 million a year, it means there is money at Transnet. The management does not even deserve to be paid that money because they are doing nothing except for collapsing and mismanaging the funds of the entity".
The industrial action at Transnet began last week with the UNTU rejecting a 3% wage increase offered by Transnet. By Monday, Satawu had joined the strike.
The strike hit the Transnet Port Terminals operations hard, some 28 vessels were in limbo outside of Transnet terminals or waiting to be given a dock on Monday. The government has been in discussions with labour, business, and the Transnet board of directors to find a solution.
Satawu had demanded the intervention of Public Enterprises Minister Pravin Gordhan, Finance Minister Enoch Godongwana, and President Cyril Ramaphosa.
Gordhan, Labour and Employment Minister Thulas Nxesi and Agriculture, and Land Reform and Rural Development Minister Thoko Didiza released a statement on Wednesday about its meetings with Transnet, labour, and business to find a resolution to salvage the economy and thousands of jobs.
"We have met with both unions this morning [Wednesday] and, in addition, have been meeting the business sector regularly to keep them informed of developments and explore areas of collaboration.
"Furthermore, this enables us to appreciate the extent of the impact of the strike on industry on the one hand, and the gap that exists in the negotiations between labour and Transnet management on the other."
READ | Transnet and unions to meet in CCMA
Western Cape Premier Alan Winde and Finance and Economic Opportunities MEC Mireille Wenger warned that the economy could afford a Transnet strike, estimating that it would cost South Africa R1 billion per day.
Business Unity South Africa (BUSA) and Business Leadership South Africa (BLSA) released a joint statement on Wednesday saying there were no short term fixes to the dispute given the "financial state of Transnet’s balance sheet, higher levels of inflation, the fiscal constraints and the stresses that business are under in this challenging economic environment."
"Business is also concerned if this lasts more than a few days, cargo ships will not just skip slots at South African ports but start taking South African ports out of schedules in the months ahead. This will add significant costs to either airfreight items or truck goods to and from other African ports – which will add to the inflation pressures South African’s are facing."
