Transnet, workers union hold urgent meeting to avert looming strike as wage talks deadlock

An urgent Section 150 meeting organised by the Commission for Conciliation, Mediation and Arbitration (CCMA) to avert a potential strike by thousands of workers at Transnet took place on Tuesday.

This followed the United National Transport Union's (UNTU) assertion that they have yet to receive a revised wage proposal from Transnet, despite ongoing negotiations.

The union has threatened to issue a 48-hour notice of industrial action if no wage offer is received, which could cripple South Africa's vital freight and transport sector.

UNTU general secretary, Cobus van Vuuren, said they would attend the s150 meeting but emphasised that no further negotiations will take place henceforth.

“UNTU expects a revised wage proposal to be tabled at this meeting. Should this not materialise, the union will exercise its constitutional right by issuing Transnet with a 48-hour notice of industrial action,” he said.

“UNTU and Transnet Management will also finalise the picketing of designated sites prior to the commencement of the CCMA-facilitated S150 proceedings.”

The implications of a strike extend well beyond immediate disruptions.

Gavin Kelly, CEO of the Road Freight Association, warned that such an action would have significant ripple effects throughout the South African economy and logistics sector. 

“It will be very concerning for the South African economy and role players in the supply chain and logistics. We are at the stage where we can’t afford any more of these continued delays, setbacks and interruptions in the supply chain. We have had enough of these in the last few years,” Kelly said.

“The world, including shipping lines and those who manage supply chains, are watching South Africa and the imports and the infrastructure of State Owned Enterprises involved very closely.

“We are also concerned about the issues that a strike could cause damage to infrastructure. We call on Transnet and its union UNTU to come up with a resolution as a strike will have a huge impact on our economy.”

UNTU is demanding a 10% wage increase for 2025/26, a R2 500 housing allowance, R2 500 medical aid allowance, and the removal of a cap on overtime from Transnet. The union has also rejected a proposed wage increase of 6% over two years and 5.5% in the third year.

Malcolm Hartwell, Norton Rose Fulbright director and master mariner, said Transnet cannot afford to pay its already overpaid and unproductive workers the increase they have demanded.

“Transnet’s rail division, by its own admission, has invested nothing in infrastructure upgrades or maintenance for several years while Transnet’s capital debt has ballooned to over R120 billion. At present, Transnet’s income is being used to service the debt and pay unaffordable wages,” Hartwell said.

“In negotiations of this nature, both parties have been waiting for the other party to blink and accept the offer that is on the table. UNTU is aware that Transnet cannot afford its demand, but also aware that it cannot afford a strike. As Transnet was able to reach agreement with the unions representing the majority of its workers, it would appear that it has handled the wage negotiations well.”

Hartwell also said it was trite that the best settlements were those where both parties felt slightly aggrieved by the settlement because they had not forced the other side to capitulate to their demands.

“Settlement somewhere between Transnet’s offer and UNTU’s demands is obviously what both parties and the CCMA will try to achieve,” he said.

“Prolonged and further negotiations would obviously have a negative effect on South Africa’s international image and I am sure that both government and the private sector are hoping that the deadlock can be broken.”

Transnet was approached for comment by Business Report and said it would respond accordingly.

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