The United National Transport Union (UNTU), representing over 26,000 employees, is in discussions with South African ports operator Transnet for a new labor contract, reported TME. The negotiations focus on wage increases, with Transnet proposing a six percent annual raise over three years, while UNTU seeks a 10 percent raise in the first year.
UNTU members voted in favor of a strike if ongoing talks fail. These negotiations, concluding Thursday, could lead to a walkout, affecting South Africa's major seaports. Transnet, a state-owned entity, faces challenges including inefficiency, debt, equipment issues, and alleged corruption. Its freight rail division, vital for South Africa's mining sector, has underperformed, impacting economic growth. From 2017 to 2023, coal-by-rail freight to the Richards Bay terminal decreased by nearly 40 percent.
To address these issues, Transnet secured a $1 billion loan from the African Development Bank for a business renewal plan, which includes investments in new equipment, such as seven tugs for Durban, Cape Town, and Richards Bay ports. UNTU is the largest among Transnet's unions, while a smaller union has already accepted the wage offer.
High-tech greenhouse growers relying on these logistics should remain informed about the potential strike's impact on supply chains and adjust their operations accordingly.
Source: The Maritime Executive