SA economy is on its knees as Transnet strike costs the country R3bn... and counting

Picture: Matthew Jordaan

Picture: Matthew Jordaan

Published Oct 13, 2022

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Durban – The Transnet strike is crippling the economy and needs to end as soon as possible.

These were the sentiments of the newly elected president of the Durban Chamber of Commerce, Prasheen Maharaj.

The economy, he said, was on its knees.

Transnet workers embarked on a strike on Monday over wage negotiations.

On Wednesday, the United National Transport Union (Untu) rejected the offer of 4.5–5.3%, citing the offer as ridiculous.

In a statement on Facebook, Untu said: “After a long day of waiting for the employer to come up with a reasonable salary increase offer during the CCMA-facilitated process, it would seem that we have just been ‘wasting time’.

“It does not seem that Transnet is taking the members and their demands seriously.”

Workers are asking for a 12% increase.

This week, Maharaj said in 2010, Transnet workers embarked on a 17-day strike which cost the economy R7 billion.

“So far, it's cost us R3 billion, something we cannot afford.”

Maharaj said this was not the first economic setback the industry had recently experienced.

“We had the pandemic, looting, flooding, the cyber-security attack in the port and the truck strike.

“The economy is on its knees, hanging by a thread and can ill afford this strike.

“It needs to be resolved because the economy may never recover if it continues.”

Maharaj said all exports were affected.

“There are so many products we export: cars, agricultural products, and mining.

“Let's look at the agriculture sector, which is just recovering.

“We export perishable stuff, like citrus fruit, bananas, nuts and grapes.

“These items have a shelf life. If the product can’t get out on time, it will spoil and will have to be disposed of.

“The agricultural sector has been massively impacted by recent flooding, and this is the time for them to recover, almost a bumper season.”

Maharaj said the domino effect included workers in the port who would not be paid.

“There is a no work, no pay policy because the ports are not operating. How long will these workers take to recover because they aren’t being paid?”

Economist Dawie Roodt said the country was flirting with a recession.

“The economy has been hugely impacted by load shedding and now this.

“In both instances these are state-owned enterprises that are failing South Africans.

“This will lead to an increase in unemployment and poverty.”

Roodt said it was unfair that civil servants were being protected in this strike, while the private sector was taking the knock.

“In the long run, we as the private sector will have to bail them out.”

Roodt said the strike was affecting coal mining, which was a significant contributor to the economy, but it was not the only sector suffering.

“Everything, and I mean everything, is being affected. What about imports? We import fertiliser – farmers need that.”

A Durban-based logistics company has had to put his staff on short time.

The owner said they unpacked containers that come into the ports and transport them inland.

“There is just no work at the moment and people are on short time because there are no containers.”

The owner, who declined to be named – said the company distributed chemicals for agriculture and food production.

He said that when the strike did end, the company would be faced with a “whiplash effect” because there would be a surge of containers to deal with.

“If we are able to move 25 containers, it will increase to about 40 a day. Then we need staff for overtime.”

Another logistics company owner said his 50 trucks had been off the road since Monday.

The 64-year-old said the company transported shipping containers to and from the port.

“So we have not been able to operate, we are losing millions of rand. We are hoping for this strike to end as we cannot afford this.”

In the latest statement, Transnet said it had tabled a three-year wage offer to its recognised unions, the South African Transport and Allied Workers Union (Satawu) and Untu.

This follows two days of wage talks facilitated by the Commission for Conciliation, Mediation and Arbitration (CCMA).

“The negotiations have been a delicate balancing act for the company – mindful not only of the affordability and sustainability of the wage increases for the business, but also having full appreciation of the cost pressures that employees face currently,” said the company.

Transnet is offering a 4.5% across-the-board increase in the current year, which will be implemented from October 1, 2022 and a 4.5% increase in the medical aid allowance in 2022/23.

“Whilst the parties have not settled on this offer, engagements are ongoing. We would like to thank all stakeholders for their continued understanding and support during this process.

“The company remains committed to concluding the wage negotiations speedily and amicably, in the interests of employees, the company and the economy.”

The government has urged both parties to return to the negotiating table and to adopt an approach which balanced the rights of workers, who were affected by rising prices, against the long-term stability and growth of Transnet, and the economy as a whole.

“Our country cannot afford further job losses in other sectors of the economy and the interruption of imports and exports to and from South Africa,” it said.

IOL