The United National Transport Union (Untu) is set to approach its members for a strike balloting process after wage talks with Transnet deadlocked on Monday.
A strike action could disrupt port operations during a time when transport minister Barbara Creecy is trying to turn around the cash-strapped state-owned rail and ports operator.
Transnet was hollowed out and repurposed to serve the selfish and narrow interests of the politically connected during the state capture era.
It 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 would require financial assistance from the state to fulfil its role as a mainstay of the economy and retain access to capital markets.
Untu is one of the largest unions at Transnet, boasting 26,018 members.
Untu spokesperson Atenkosi Plaatjie said the union and management of the state-owned rail and ports operator “officially reached a deadlock” during a failed conciliation process by the Commission for Conciliation, Mediation and Arbitration (CCMA).
“As such, the CCMA commissioner will issue a certificate of non-resolution, legally enabling Untu to commence with industrial action. Fortunately, the picketing rules were finalised before the start of negotiations, which now allows us to swiftly move forward with plans for industrial action,” she said.
Speaking to Business Day on Monday, Plaatjie said the union was now set to ballot its members on whether to accept Transnet’s wage offer, or reject it and embark on strike action.
Untu has refused to sign the three-year wage agreement that the SA Transport and Allied Workers Union (Satawu) has 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 at about 3%.
Plaatjie said: “Untu engaged with Transnet management at the Transnet Bargaining Council in what was meant to be a final attempt to find common ground.
“However, it became abundantly clear that Transnet entered the process without any real commitment to resolving the impasse. Instead of meaningful engagement, we were met with power plays and political posturing.
“The negotiations have reached a definitive conclusion and the deadlock stands… The time has come to mobilise. The time has come to negotiate on the streets.”
Transnet said in a statement it had negotiated in good faith and in the interests of the company and employees.
“The organisation approached the conciliation with a genuine desire to find an acceptable outcome, recognising that job security is essential for both employee wellbeing and Transnet’s long-term sustainability,” the company said.
“Untu is on record as having rejected the offer and indicated it would not seek additional mandate from its members. We, therefore, welcome Untu’s decision to ballot its members, as this will serve as a true reflection of employees’ wishes.
“We trust that the balloting process will be done in an appropriate manner, following acceptable protocols and prescripts.”
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.