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Strike threatens fuel supply

Johannesburg – The strike action that commenced Monday at the transport utility Transnet threatens to disrupt the country's fuel supply, according to an analyst.

The industrial action, which has sparked fears of violence involving the divided workforce, could also disrupt the rail movement of key commodities like iron ore, supply of coal to power stations and vehicles.

The South African Transport and Allied Workers Union (Satawu), which represents 39% of the labour force, proceeded with the industrial action on Monday after rejecting Transnet's revised 11% wage offer.

But United Transport and Allied Trade Union (Utatu) has not embarked on the strike action and has recommended Transnet's latest offer to its members, who account for 45% of workers.

Together, the two unions make up around 84% of Transnet's total workforce.

Ross Bruton, energy analyst at Frost & Sullivan, said a disruption in fuel supply would have a substantial effect on the availability of the product to the market.

Bruton said it was difficult to gauge the level of effect the strike would have on pipeline operations as "we currently do not know what contingency plans Transnet has put in place to ensure the uninterrupted operation of the infrastructure".

Transnet operates the major liquid fuel pipelines in SA, consisting of two pipelines running from the Durban port to Gauteng.

This consists of a crude oil pipeline and a product pipeline, which are the major sources of liquid fuel supply to the Gauteng market.

The transport utility says in its website its liquid fuels network traverses KwaZulu-Natal, Free State, Gauteng, North West and Mpumalanga. Its pipeline network transports 100% of South Africa's bulk petroleum products. 

Police on high alert

The Natref inland refinery receives all of its crude oil requirements from Transnet Pipelines. The Natref refinery is a joint venture between Sasol Mining and Total South Africa. Other customers include BP, Caltex, Engen, Exel and Shell.

Bruton said the potential disruptions in pipeline activities depended on the length and intensity of the strike action and Transnet's ability to manage its operations with available resources throughout its duration.

Transnet spokesperson, John Dludlu said the company was concerned about the impact of a "divided workforce" regarding violence and intimidation.

"Transnet would like to urge the union's leadership to ensure discipline amongst members and refrain from engaging in acts of violence and intimidation against those colleagues who choose to work," Dludlu said.

He said the group had put the SA Police Services on "high alert" and communicated its concerns about the spectre of violence arising from a divided labour movement.

In terms of contingency plans, Dludlu said Transnet had sufficient stock piles and, on Sunday, it ran extra trains to transport key commodities. He reiterated that the company's offer was "fair and generous".

Satawu maintains that the dispute is not just about money.

It has demanded that the more than 5 000 workers, who are currently employed by Transnet on annual contracts, should be employed on a permanent basis.

"We have also demanded that the formula for annual bonuses be negotiated," Satawu said.

    
  - I-Net Bridge
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