'As bad as load shedding' - Why business thinks Transnet strike could be 'final nail in coffin'

The Transnet wage strike could be the "final nail in the coffin" for an already limping South African economy, if the wage dispute is not swiftly addressed, according to business lobby groups. These groups have warned that the economic impact could be worse than the Covid-19 national lockdown or at least as bad as load shedding if it were allowed to hobble port activity.

In recent years, the South African economy has already been rocked by Covid-19, stubbornly high unemployment, the damage of last year's unrest, flooding in KwaZulu-Natal earlier this year, and the longest and most severe spate of load shedding on record. 

The United National Transport Union (UNTU) and the South African Transport and Allied Workers' Union (Satawu) have embarked on a strike over wages at the entity, rejecting a 3% wage increase offer in deadlocked negotiations. Satawu is demanding a 12% increase across the board while UNTU demands 13.5%.