South African workers strike nears end as Transnet reaches wage deal with key union

State-owned logistics company Transnet has reached a three-year wage deal with one of the two unions that represent the majority of its striking workers.

PHOTO: Above view of Durban Harbour, South Africa. Getty Images

A resolution to the strikes is expected to ease cargo congestion in Durban and other South African ports and allow for exports from the country to pick up again.

Transnet port and rail workers, represented by the United National Transport Union (UNTU), have been on strike since 6 October over pay disputes. Another labour union, the South African Transport and Allied Workers Union (SATAWU), joined the strike on 10 October.

Transnet has said that its latest offer for a 6% wage hike for the current financial year, a 5.5% raise next year and a further 6% boost in 2024 has been agreed by UNTU union. The union represents 54% of Transnet’s workers.

"The company's priority in the immediate is clearing any backlogs across the port and rail system – prioritising urgent and time-sensitive cargo, and implementing recovery plans, working with industry and customers,” Transnet said in a statement.

The strike had disrupted cargo flows and exports from the country, affecting several businesses.

Meanwhile, the second workers union, SATAWU, has yet to agree to the new pay deal.

By Shilpa Sharma

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