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Transport unions split over wage deal

Johannesburg - The transport strike that has crippled rail and port operations may drag on after unions appeared to diverge over whether to accept a proposed wage deal by logistics group Transnet.

The strike, in its second week, has curbed exports of metals, cars, fruit and wine to Europe and Asia as well as imports of vehicle parts and fuel supplies just three weeks before the start of the 2010 FIFA World Cup in June.

The United Transport and Allied Trade Union (Utatu), Transnet's biggest union, said most members favoured the deal and the union expected to approve it on Friday. Workers would report back to work on Monday.

The South African Transport and Allied Workers Union (Satawu), the smaller union representing Transnet workers, was still counting members' votes from across the country and there were signs it might not embrace the deal.

"They have not accepted it at all. We are going to consolidate [what we have] in the office this morning, but so far they have not accepted it so we'll see about the way forward," Satawu president Ezrom Mabyana told Reuters.

The transport sector strike may be wrapped up next week, but another protest looms at state power utility Eskom.


Strike hurts global firms with units in SA

A threat by a large number of Eskom workers to strike over a long-standing pay dispute starting next Wednesday could disrupt power supply in Africa's biggest economy and embarrass President Jacob Zuma's government before the world's premier sports event.

The two unions at state-owned Transnet represent 8% of the logistic group's 54 000-strong workforce.

The United Transport and Allied Trade Union (Utatu) said it had yet to call off the strike as Transnet postponed a meeting at which the parties were expected to sign the deal until Friday.

Transnet said it would only be able to confirm later on Friday if more employees had reported to work. Two-thirds of its workforce have been on strike since Monday last week.

Striking transport workers are under pressure from the government to end the strike, while the workers themselves are feeling the pinch because they are not paid while on strike.

Economists have estimated losses in the hundreds of millions of rand, but this would rise to billions if the strike dragged on, and it may take weeks to clear the backlog at the ports.

The strike has hurt global firms with units in South Africa.

Anglo American, Xstrata and the world's top steel maker ArcelorMittal have declared force majeure on the supply of iron ore, ferrochrome and steel respectively. Transnet also declared force majeure on coal destined for export.

So far, coal exports to power plants in Europe and Asia have not been affected thanks to stocks at the ports, traders said.

Utatu said it has already signed an agreement to end a parallel strike affecting millions of commuters, with operations expected to resume over the weekend.

  - AFP

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