Transnet strike gathers steam

Johannesburg – Logistics parastatal Transnet was set to face a full blown strike from Wednesday as both its recognised trade unions formally rejected its 11% wage increase offer.

In a feedback meeting with Transnet on Tuesday evening the United Transport and Allied Workers union (Utatu) said its members had also rejected the offer.

“Both unions have formally rejected the offer,” said Transnet spokesperson John Dludlu.

While the smaller SA Transport and Allied Workers Union (Satawu) had gone on strike on Monday, Utatu had asked for more time to consult its member. The two unions represent about 85% of Transnet’s workforce.

“Our members rejected the offer and will be on strike from 06:00 tomorrow,” said Utatu deputy secretary general Eddie de Klerk. The vote for the strike went against the union leadership’s advice to accept a revised 11% wage increment.

“We thought management moving to 11% was a reasonable offer and recommended it be accepted. We tried to inform the members that it’s a reasonable offer,” said de Klerk. However, the message was clear from the workers: “They want a decent living wage.”

Transnet upped its offer from the initial 8% increase, while the unions demand a 15% increase.

Addressing the media before the strike last week, Transnet human resources director Pradeep Maharaj said a 15% salary increase would add another 18% to Transnet’s fixed operating costs and salary bill, which was unaffordable.

Another factor working against the affordability of the demand was lower productivity caused by the fall in the group’s revenue in the past financial year. The company said its initial offer had guaranteed job security for two years, even though a retrenchment of up to 2 000 employees would have been required to take productivity levels to those of early 2009.

Utatu said one of the major reasons for the rejection of the 11% offer was that the “no retrenchment” guarantee was withdrawn by Transnet as part in the new offer. Utatu’s De Klerk responded that showed desperation on the part of Transnet about funding but said Transnet “will have to find the money elsewhere or cut the capital expenditure”.

Even though Maharaj said Transnet employees were relatively well-paid, he admitted at the media briefing that overtime pay was a big part of the wage bill. That indicates many people needed to work overtime to make ends meet.

Said De Klerk: “The message is quite clear from our members, they want a living wage and will be on strike for as long as it takes Transnet to table a decent offer. People are forced to work overtime just to live.”

- Fin24.com