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At a media briefing, the group executive of human resources Pradeed Maharaj said the parastatal's costs would surge from R24bn to R25bn if it raised wages by 15%, an increase the South African Transport and Allied Workers Union (Satawu) and United Transport and Allied Trade Union (Utatu) are demanding.
Transnet is offering 8%.
Maharaj said the 15% wage hike would force the company to either increase tariffs, or reduce its capital expenditure, or cut jobs.
Transnet plans to invest R93bn over the next five years as part of its plan to upgrade rail infrastructure, ports and pipeline.
Maharaj also said Transnet is still going to meet with the unions later on Thursday to avert a massive strike on Monday.
The parastatal is prepared to burn the midnight oil in an attempt to reach a settlement before Monday, he said.
Transnet is satisfied with its 8% offer as this is market related.
Maharaj confirmed that the group had received formal notice to strike. He said the challenge is that wage increases have increased in the 2003/04 financial year while productivity has declined over the past few years.
- I-Net Bridge
