Transnet strike fizzles as majority union signs 6% wage deal

The hitherto idle port in Cape Town is set to be buzzing with activity again this morning. Picture: Leon Lestrade/African News Agency (ANA)

The hitherto idle port in Cape Town is set to be buzzing with activity again this morning. Picture: Leon Lestrade/African News Agency (ANA)

Published Oct 18, 2022

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Cape Town - The Transnet workers’ strike could be about to end as workers affiliated to the United National Transport Union (Untu) return to work today, after agreeing to a three-year wage deal in a process mediated by the Commission for Conciliation, Mediation and Arbitration (CCMA).

At the time of writing, there was no word yet from the minority South African Transport and Allied Workers (Satawu). Untu, the majority union at Transnet, has 24 992 members accounting for 53.9% of employees at the bargaining unit at Transnet.

In a statement last night, Transnet said its immediate priority was clearing backlogs across the port and rail system, in particular urgent and time-sensitive cargo and implementing recovery plans while working with industry and customers.

Transnet spokesperson Ayanda Shezi said the wage deal was applicable for the period April 1 this year to March 31, 2025 and applied to all bargaining unit employees “including those who are not members of Untu, and will be implemented from October 1.”

The deal sees workers receive a 6% increase for year one and three, and a 5.5% hike in year two.

Both unions had been holding out for an increase above the inflation rate of 7.6% and had on Friday initially rejected Transnet's 6%e offer. Their original demand was for a hike of between 12% and 13.5%.

The agreement with Untu came as a joint statement by Finance and Economic Opportunities MEC Mireille Wenger and her agriculture counterpart Ivan Meyer warned that 12 000 jobs were on the line in the Western Cape berry industry.

They were echoing the sentiments of South African Berry Producers Association (BerriesZA) chairperson Justin Mudge who said South Africa was losing R134 million a week as the Transnet strike halted berry export.

Mudge said even if a solution to the impasse was found in the next day or two, the backlog in the berry value chain would take weeks to clear resulting in further losses for the sector.

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Cape Argus