TRANSNET workers affiliated with the United National Transport Union (UNTU) have embarked on a strike, potentially harming South Africa’s export sector and an already fragile economy.
UNTU and its members have rejected Transnet’s wage offer of a 1.5% pay increase, saying that the offer must be aligned with the rising cost of living and current inflation.
Annual inflation in South Africa is currently 7.6%.
The union added that the wage offer was an insult and demanded an increase of between 12% and 13%.
Transnet said its offer to labour unions of a 1.5% pay increase and a once-off payment of R10,000 before tax is reasonable as it considers the company’s “financial and operational challenges.”
“Transnet has consistently made the point that its wage bill currently makes up over 66% of monthly operating costs,” the company said in a statement.
“This is not sustainable, particularly given the current operational and financial
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