Safmarine struggles to operate in South African transport strike

STRIKING South African Transport and Allied Workers (SATAWU) have thrown national transportation into chaos, and causing major disruptions to Safmarine operations after wage talks broke down with state employer Transnet.

The United Transport and Allied Trade Union (UTATU) negotiators, representing the other Transnet union, have recommended members accept an offered 11 per cent wage increase. Eighty-five per cent of Transnet's 54,000 workers are in the two unions, with the striking SATAWU representing 20,000 members.

Safmarine said it cannot ship containers by rail in any South African port, said the company in a statement.

"We have not collected cargo from the Port of Durban. Our options are limited; there are no transhipment ports serving this region. Shipping services to South Africa are direct. The best contingency plan we could make was to adjust schedules so ships left ports earlier than scheduled," said a company statement.

With Safmarine transporting high volumes of reefer cargo and time-sensitive auto parts, a long strike would be exceptionally damaging for the company and the South African economy, said London's Containerisation International.

In the wage talks, Transnet first offered an eight per cent wage rise, later increasing it to 11 per cent, which still fell short of union demands for a 15 per cent hike. South African inflation runs at 5.1 per cent a year so Transnet's pay offer is ahead of this, but there were also complaints of the absence of a no lay-off clause and an upgrade of in other benefits.

Source: www.schednet.com