SOUTH Africa’s Transnet announced on Friday a deadlock in wage negotiations, with two labour unions raising the prospect of a strike that could further cripple the State-owned logistics company and impact Africa’s most advanced economy.
Transnet has been operating below capacity due to the shortage of locomotives, inadequate maintenance, vandalism and theft of its infrastructure, costing miners billions of rand in potential revenue.
In a statement, Transnet said a wage dispute had been formally declared with the South African Transport and Allied workers Union (Satawu) and the United National Transport Union (UNTU) after negotiations which started in May.
Transnet said the unions had rejected its offer of a 1.5% increase on employees’ pay, excluding medical and housing allowances.
“Their position remains unchanged from the previous rounds of wage negotiations, with a demand for a 12% increase on annual guaranteed pay, as well as other demands which add up to a total increase in labour costs of 21%,” Transnet said.
UNTU General Secretary Cobus van Vuuren told Reuters that his union, which
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