Durban – Still on the mend following the Covid-19 lockdown, the South African economy has been hit another devastating blow as the Transnet strike enters its second week.
According to the latest reports, the SA Transport and Allied Workers Union (Satawu) and the United National Transport Union (Untu) have rejected Transnet's 6% wage increase offer.
The unions are demanding a 7.6% increase which is above inflation. Previously they were demanded an increase of 12% to 13.5%.
Speaking to eNCA, Satawu’s Anele Kiet said members across the country have rejected the employer's latest offer. He said the workers were still willing to fight for what they believe.
Kiet said their members were clear on their demand for nothing less than the inflation rate.
Several sectors have called for an urgent resolution to the wage negotiations. The South African Association of Freight Forwarders has appealed for the government’s urgent intervention as industry suffers mammoth losses from the strike.
“The South African Association of Freight Forwarders’ research shows that logistics delays to the supply chain cost our 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,” said Saaff CEO Juanita Maree.
She said according to the latest SA Revenue Service (Sars) merchandise statistics, the country traded R343 billion worth of goods, both imports and exports, in August.
“If we consider that 70% of merchandise is processed via the ocean modality, the current inactivity blocks more than R8bn worth of goods each day. Combined with the ripple effect, the impact is more than the country can absorb, given the current economic climate,” Maree said.
Meanwhile, BerriesZA chairperson Justin Mudge said the port strike threatens 30 000 jobs in the berries industry.
“The latest strike action could be the final nail in the coffin for berry farmers who fill a critical gap in the labour sector, due to their harvest season running from September to November before the early stone fruit and table grape harvest season commences,” he said.
Last week, Transnet issued a statement detailing its three-year wage offer to the unions:
• A 4.5% across-the board increase in the current year, which will be implemented from October 1, 2022
• A 5.3% across-the board increase in 2023/24
• A 5.3% across-the board increase in 2024/25
• A 4.5% increase in the medical aid allowance in 2022/23, which will be adjusted in line with the across-the board increase in the subsequent two years
• The backpay will be paid in two tranches – three months’ backpay on November 15, 2022, and three months’ backpay on January 16, 2023.
IOL