Transnet unions urged to be ‘realistic’ with wage demands

Trade unions UNTU and SATAWU are demanding an increase of between 12 and 13.5% - while the company is offering between 4 and 5%.

BUSA CEO Cas Coovadia says a protracted strike at the state-owned rail and ports company has the potential to do real damage to the economy.

"We need to recognize that Transnet was already operating sub optimally before the strike and the strike has exacerbated the situation and put our economy at risk, both imports and exports are significantly impacted by the strike because critical ports are operating at minimum capacity where in some areas, they are not operating at all. 

"We urge particularly unions to recognize that Transnet cannot afford wage demands that go beyond its capability and that some of it services are essential services, essentially for the economy , essential for growth without which we cannot create jobs and in fact to which in situations like this it can exacerbate down the employment situation."

Coovadia adds that they have been in constant communication with Transnet.

"Busa has been in constant touch with Transnet, we have been receiving regular reports of what has been happening we remain committed to working with Transnet to find an urgent but sustainable solution to this problem and the problems of lack of optimal capacity of operations. 

"Transnet is a critical SOE, it is a critical player in the logistics environment and with successful operating road, rail and sea network would be a significant wound to our economy whereby Transnet is operating very poorly because of the strike which is the negative impact."

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