Disgruntled members of the United National Transport Union (Untu) have overwhelmingly voted in favour of a strike at struggling Transnet after a wage dispute the Commission for Conciliation, Mediation and Arbitration (CCMA) is trying to resolve.
Untu is one of the largest unions at Transnet, boasting 26,018 members. A strike could disrupt port operations while the government is trying to turn around the cash-strapped, state-owned rail and ports operator.
Transnet said that throughout the negotiation process it engaged in good faith dialogue “aiming to reach a fair and sustainable agreement that recognises the valuable contributions of our employees while ensuring the organisation’s long-term viability and competitiveness”.
“Despite the vote in favour of industrial action, we remain committed to resolving the wage dispute. Transnet’s immediate priority, should Untu continue with a strike, is to ensure business continuity and the safety of our employees and assets.”
The rail and ports operators said it continued to engage with its employees in terms of the “reasonability and fairness of the offer, which is above inflation, and above most settlements in the public and private sectors”.
“Transnet continues to keep all stakeholders updated on developments in this regard. Engagements continue at the CCMA,” it said.
Econometrix chief economist Azar Jammine said there was much optimism the economy would recover after the apparent end of load-shedding and the formation of the Government of National Unity (GNU) last year.
It had been hoped that structural impediments to economic growth, such as the logistics crisis, would be dealt with.
“We have not seen any major pick up in economic growth and some of the reasons for that are constraints in the logistics front. A strike activity [at Transnet] won’t point very favourably to economic growth,” Jammine said.
The union embarked on a balloting process on April 15 after rejecting the three-year wage agreement, which rival SA Transport and Allied Workers Union (Satawu) accepted, for increases of 6% in the first and second years and 5.5% in the final year of the agreement.
Untu is demanding a one-year 10% wage increase for 2025/26, a R2,500 housing allowance, R2,500 medical aid allowance and the removal of a cap on overtime. Inflation is hovering around 3%.
Untu spokesperson Atenkosi Plaatjie said the union had received a “decisive and overwhelming mandate from our members to embark on industrial action” in response to the wage deadlock with Transnet that resulted in the CCMA granting the union a certificate of nonresolution.
The clear and uncompromising message is that Untu members are willing to down tools.
— Untu spokesperson Atenkosi Plaatjie
“In a display of the full force and power of collective bargaining, the majority of ballots cast by our members are in favour of taking to the streets to demand a wage increment that reflects the deepening economic crisis facing Transnet employees and job security, in the form of a nonretrenchment clause, which is the heart of the impasse,” she said.
“The clear and uncompromising message is that Untu members are willing to down tools.”
Plaatjie said the balloting process was held with integrity. “It was fair and fiercely democratic despite attempts by external forces to sabotage us by preventing officials from holding meetings with our members,” Plaatjie said.
“The majority have spoken, and Untu has been working around the clock to ensure we are strike-ready. We have drawn strength and lessons from our 2022 industrial action, ensuring that we are more prepared this time around.”
However, Untu would not go on strike just yet. Plaatjie said it remained committed to the section 150 intervention process by the CCMA that is set to continue on Wednesday.
“Untu remains confident that the wage proposals we have presented to management have the best interest of our members at heart, and the proposals reflect the economic reality faced by the working class with a strong emphasis on job security amid the private sector partnership reforms at Transnet,” Plaatjie said.
“We can only hope that Transnet mandators will give the wage proposals on the table serious consideration. Should the S150 CCMA process fail to yield positive results, Untu will issue Transnet with a 48-hour notice of industrial action.”
Transnet, which was hollowed out and repurposed to serve the selfish and narrow interests of the politically connected during the state capture era, reported a R2.2bn loss for the six months to end-September.
Interest on its R100bn debt consumes R1bn a month and analysts have said the company requires financial assistance from the state to fulfil its role as a mainstay of the economy and retain access to capital markets.
Update: May 14 2025
This article has been updated with comment from Transnet and Azar Jammine.
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