South African ports and railways strike ultimatum

- Up to 50,000 port and railway members of the South African Transport & Allied Workers' Union (SATAWU) will begin a nationwide strike on Monday May 10th, after negotiations with the state-owned transport operator Transnet collapsed.

The unions have been demanding a 15% wage increase but it is understood that Transnet is not prepared to offer more than 8%. The aim now is for SATAWU to halt all operations at the country's ports, pipelines and railways until their demands are met.

The country’s main Port of Durban which handles more that 65% of South Africa’s container traffic will be severely impacted by the strike as will all other all other port, terminal and Transnet railfreight operations.

As part of their case, the unions have drawn attention to the massive salaries paid to Transnet’s top managers with the lowest paid employee having to work for 121 years to earn the annual salary and bonus of the acting group CEO. In addition, the unions claim that more than half the bonuses paid in 2009 went to less than 10% of the work force.

The unions are also demanding that contract workers be made permanent and that no workers will be laid off in 2010 but the company has replied that it can only make such a commitment if the 8% wage offer is accepted.

Source: Container management