The ongoing impasse between unions and Transnet is having a devastating effect on our economy – much worse even when compared to the ongoing energy crisis warned the South African Association of Freight Forwarders (SAAFF).
The association’s chief executive Dr Juanita Maree said “As we have learned during the pandemic, it is absolutely essential for supply chains to be maintained at all times.”
SAAFF’s research shows that logistics delays to the supply chain cost the economy between R100-million and R1-billion per day. However, when calculating the total economic cost, the final consequence of the devastating impact is far higher than that.
According to the latest SARS merchandise stats, R343-billion worth of goods were traded (imports and exports) by the country in August. If we consider that 70% of merchandise is processed via the ocean modality, the current inactivity blocks more than R8-billion worth of goods each day! Combined with the ripple effect, the impact is more than the country can absorb, given the current economic climate.
Transnet declared force majeure at its ports on Thursday,as workers began an open-ended strike over wages.
Transnet operates the country’s freight rail network and all the country's ports. It said the strike action would have a profound impact on economic activity across all sectors, and it urged workers to consider the long-term consequences of the strike on themselves and the economy as a whole.
"This serves as a formal declaration by Transnet Port Terminals... of the occurrence of an event of force majeure to all our customers following the strike action declared by the two recognized unions within Transnet," read a letter dated October 6 and signed by the port subsidiary's chief executive, Jabu Mdaki.
Speaking at a mining conference in Johannesburg Transnet's group chief executive Portia Derby said "what we are hoping is that we will be able to reach an agreement sooner rather than later, without us having to buckle."
Thermal coal producer Thungela Resources said an extended strike at Transnet would impact its production and exports.
State-owned Transnet was already operating below capacity because of a shortage of locomotives, poor maintenance, vandalism and theft of its infrastructure, which has cost miners billions of rand in potential revenue because of throttled mineral shipments.
The United National Transport Union (UNTU) and the South African Transport and Allied Workers' Union (SATAWU), which together represent most Transnet workers, this week turned down Transnet's offer of a wage rise of 3%-4%, saying it was below annual inflation rate, which was 7.6% in August.
UNTU members began a strike on Thursday and SATAWU said it will join in the strike from Monday.
Transnet has said the strike was illegal and that unions had not followed rules set down in the labour law.
It questioned the balloting processes used to approve the strike action and said no picketing rules had been agreed by the company and striking workers, as required by labour law.
Both unions rejected Transnet's charges, saying they had given the required 48-hour strike notice.
UNTU general secretary Cobus van Vuuren accused Transnet of seeking to intimidate workers by declaring the strike illegal.
All parties have agreed to mediation by the Commission forConciliation, Mediation and Arbitration (CCMA), a state agency.
The unions have said further talks, due to start on Wednesday will not affect strike plans.