Strike cripples Richards Bay terminal

Johannesburg - The Richards Bay Coal Terminal (RBCT) has been crippled by a strike by 105 workers, which started on Monday morning.

The terminal, which belongs to the country's biggest coal producers, has come to a standstill, said Joseph Dube, provincial secretary of the SA Transport and Allied Workers' Union (Satawu). The union represents the 105 strikers.

This is more than 90% of the workforce at this highly mechanised terminal, which in June already exported 27% less coal than the same month last year because of the Transnet strike during the last 18 days of May.

The Transnet strike halved coal stocks at the terminal.

The RBCT belongs to Anglocoal, BHP Billiton [JSE:BHP], Xstrata and Sasol Coal.

In 2009 the terminal exported only 61 million tonnes, despite its capacity of 72 million tonnes, because of production problems at coal mines and transport troubles at Transnet.

This export capacity is soon to be enlarged to 92 million tonnes. Most of Europe's coal for heating is shipped from the RBCT.

The company previously offered a wage increase of 9.5%, but Satawu rejected this, after which the offer dropped back to 6%.
The fact that the offer was decreased to 6% reflects the employer's attitude, Dube remarked on Monday.

He said the 105 workers were demanding a raise of 11%, as well as a support service allowance of R1 000 a month. It is understood that the RBCT had offered to introduce a R600 per month support service allowance.

RBCT CEO Raymond Chirwa said he was disappointed that the workforce had not accepted the company's offer, especially as it was practically double the inflation rate of 4.6%.

He said the company aimed to keep all equipment operational to ensure that the offloading of trains and the loading of ships proceeded as smoothly as possible.

Dube said general workers at the terminal earned about R10 000 a month, and artisans about R18 000.

 - Fin24.com