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SOUTH AFRICA state-run logistics giant Transnet and its two striking unions may meet later this week after wage talks collapsed, bringing the country's freight movement to a standstill.

"The situation is still unchanged," said Transnet spokesman Mboniso Sigonyela, reported the South African Press Association. "I'm sure there will be meetings, but nothing has been confirmed."

The United Transport and Allied Trade Union (UTATU) and South African Transport and Allied Workers Union (SATAWU) have been on strike since last week after they rejected an 11 per cent wage offer.

Economists warned yesterday a "no work, no pay" strike running longer than a week would end up costing workers dearly. "It is stupid to strike for longer than a week," said Dawie Roodt, chief economist of the Efficient Group.

Transnet spokesman John Dludlu said strikers had caused some ZAR30 million (US$3.9 million) in damages to Transnet equipment. Economists put the loss to the economy at anything between ZAR1 billion and ZAR15 billion.

London's Containerisation International reported that the unions said their members "remain steadfast in the withholding of their labour until a settlement is reached".

In a joint statement following meetings with the Commission for Conciliation and Mediation, SATAWU and UTATU said "management walked away from any negotiated settlement".

Source: Sea Trade Asia