Union Rejects New Offer from Transnet in South Africa Port Strike

SA Transport and Allied Workers Union (Satawu), one of the two unions involved in a national port and rail strike in South Africa, has rejected an improved offer from Transnet and vowed to intensify action.

Talks to end the strike, which is set to enter its third week, are being facilitated by South Africa’s Commission of Conciliation Mediation and Arbitration (CCMA) and an improved offer of a 6% wage rise was tabled on Friday TimesLive reported. However, the proposal did not contain a commitment to no retrenchments a key demand of the unions.

Satawu said that members through regional structures rejected the offer at the weekend.

“We were mandated by our provinces. All nine provinces rejected the proposal of the CCMA commissioners and also they are worried that Transnet is unable to commit on the no-retrenchment clause,” Satawu Deputy General Secretary Anele Kiet, was quoted as saying.

Kiet said that the union would intensify its strike.

The position of the United National Transport Union (UNTU) on the latest offer remains unclear.

On Tuesday last week UNTU rejected an offer from Transnet made through the CCMA of a 4 – 5% wage rise depending on grade. The union described the offer as “ridiculous” and very far away from inflation increases.

Transnet Port Terminals (TPT) had previously declared Force Majeure on its operations as result of the strike action.

The strike impacts all TPT terminals including container terminals in Durban, Port Elizabeth, Ngqura, and Cape Town.

As 11 October agents Inchcape Shipping Services (ISS) reported that pier 2 at Durban Container Terminal was “challenged by minimal resources” and waterside, landside and rail were not operational. Pier 1 Container Terminal in Durban had one gang working and landside operations had been suspended.

Data from analysts Four Kites showed significant slowdowns into movements from South African ports. As of 9 October the waiting time for exports from South African ports was 7.7 days, up 108% from the start of the month.

“We anticipate shippers will look to hold orders being imported into South Africa until the dispute is resolved, causing dwell times to increase and a short-term impact on holding costs for goods,” commented, Glenn Koepke, VP of Network Collaboration at FourKites.