South Africa is staring down the barrel of a potentially crippling transport strike that could derail the country’s already fragile economy, as tensions boil over between Transnet and its biggest labour union.
The United National Transport Union (UNTU), representing over half of Transnet’s 46 000-strong workforce, has warned of industrial action after wage negotiations with the state-owned ports and freight rail operator hit a dead end. Talks collapsed following failed mediation efforts by the Commission for Conciliation, Mediation and Arbitration (CCMA), as first reported by BusinessTech.
UNTU has rejected Transnet’s proposed 6% annual wage hike for the first two years and 5.5% in year three. The union is demanding a 10% increase, citing the rising cost of living, inflationary pressures, and stagnant wage growth in recent years.
A strike could spell disaster for key economic sectors, especially mining and agriculture. South Africa’s export arteries depend heavily on Transnet’s railways and ports to move bulk goods like iron ore, coal, and citrus. The last time workers downed tools in 2022, it reportedly cost mining firms close to R815 million per day in lost revenue, according to the Minerals Council South Africa.
As fears mount over another strike, the global trade landscape is already shaky. With US President Donald Trump’s controversial new tariffs disrupting international supply chains, South African exporters could face even tougher times if their goods can’t reach global markets.
While UNTU rallies its members, Transnet insists it remains committed to salvaging the talks and revitalizing the ailing company. In a statement, the company said it ‘remains optimistic about concluding this process’ and reiterated its focus on economic recovery.
However, the clock is ticking. The CCMA is expected to issue a certificate of non-resolution, giving UNTU the legal green light to go on strike.
Unless a last-minute deal is reached, South Africans could soon witness yet another high-stakes standoff—this time on the picket line.
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Picture: Transnet / Facebook
