Transnet has contingency plans to cushion the impact should the United National Transport Union (Untu) goes ahead with a threatened strike. Untu represents the majority of workers at the ports and rail company.
Transnet said that while plans were in place, it was confident the strike would be averted — thanks to a decision by the Commission for Conciliation, Mediation and Arbitration (CCMA) to mediate in the dispute.
“Transnet has business continuity plans in place should the need arise. We, however, remain hopeful we can achieve a positive outcome to the current impasse. Transnet welcomes the decision by the CCMA to help resolve the matter,” said Transnet.
Talks facilitated by the CMMA broke down during negotiations, with both parties alleging bad faith.
The union has refused to sign a three-year wage agreement that has been accepted by a rival union, the South African Transport and Allied Workers Union (Satawu), for increases of 6% in the first and second years, and 5.5% in the third year. Its counterproposal of a 10% wage increase has been rejected outright by Transnet as unaffordable.
All the wage demands presented by Untu thus far are unaffordable and unrealistic — and if implemented would put Transnet in serious financial jeopardy, pushing the company to the brink of bankruptcy
— Transnet to employees
The union is balloting members on whether to down tools again after it last did so in 2022.
Untu is threatening to take its 26,500 members on strike, a move that will almost cripple the rail and logistics entity, which has been trying to recover from years of underinvestment in infrastructure and from state capture. A strike by Untu members — many of them skilled technical personnel — would most likely halt freight trains and shut critical port and pipeline operations.
Untu spokesperson Atenkosi Plaatjie said the balloting process was under way and expected to be completed next week. She said Untu had been running two parallel processes, one via digital submissions, while officials were also holding meetings with members at different Transnet depots countrywide. “It is a tedious process which is necessary as we want it to be fair, transparent and democratic,” she said.
In a letter to Untu last month, Transnet called the union out for negotiating in bad faith and for attempting to put the company at risk. It accused Untu of airing confidential information discussed during the conciliation period.
“The fact is, all the wage demands presented by Untu thus far are unaffordable and unrealistic — and if implemented would put Transnet in serious financial jeopardy, pushing the company to the brink of bankruptcy. As custodians of this organisation, we have a duty to ensure its long-term sustainability for employees, customers and the broader economy,” Transnet told employees.
Untu, however, hit back, accusing the company of entering the wage talks with no commitment to resolve the impasse and of resorting to “power plays and political posturing” instead of meaningful engagement. “Untu finds management's approach deeply regrettable, especially given the serious socioeconomic consequences that industrial action may carry,” said general secretary Cobus van Vuuren.
“We [had] hoped for a genuine effort to protect the interests of workers, ensure the long-term sustainability of the company and minimise the impact of our extremely fragile economy.”
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