The looming strike of more than 20 000 workers at Transnet has raised concern of industry players about the potential impact it could have on the South African economy and the logistics sector.
This comes as discontent is brewing among the members of the United National Transport Union (UNTU) after they declared a deadlock in talks for the 2025/2026 financial year on Monday, rejecting Transnet’s latest wage offer of 6%.
In stark contrast, the South African Transport and Allied Workers Union (Satawu) has accepted the wage offer, revealing a split within the workforce.
UNTU said they found management’s approach to the conciliation process deeply regrettable, especially given the serious socio-economic consequences that industrial action may carry.
The Commission for Conciliation, Mediation and Arbitration will issue a certificate of non-resolution, legally enabling UNTU to commence with industrial action as negotiations have reached a definitive conclusion and the deadlock stands.
However, Transnet on Tuesday said that a conciliation process ended without an agreement on Monday.
The organisation said it had approached the conciliation with a genuine desire to find an acceptable outcome, recognising that job security is essential for both employee well-being and Transnet’s long-term sustainability.
"It is regrettable that as a result of the dispute lodged by UNTU, Transnet is unable to legally extend the increase to UNTU members, which include, inter alia, UNTU permanent employees, fixed-term employees, employees on temporary disability, and learners.
"Approximately 20 000 employees will be eligible for the increase effective 1 April 2025. Until UNTU and Transnet conclude a collective agreement on wages and conditions of employment, UNTU members will not receive a wage increase or any increase to medical subsidy, the housing allowance, pension fund contributions and other associated benefits.
Malcolm Hartwell, Norton Rose Fulbright director and master mariner, said many of the State-owned enterprises (SOEs) had bloated workforces with grossly inflated salaries, which would not be sustainable in the private sector.
"Transnet and its various divisions have been in financial difficulty for over a decade. This is as a result of corruption, nepotism, mismanagement and general inefficiency," Hartwell said.
"Historically, the SOEs like Transnet have been supported financially by the ruling party and extended lifelines by the Treasury where necessary.”
Hartwell said that in light of their productivity, any wage increase to Transnet workers would appear excessive.
"The reality, however, is that the unions are there to protect their members and they know that Transnet is critical to South Africa’s economy and a strike would be devastating not only for the company but for the economy," he said.
"A strike in the docks means no cargo enters or leaves South Africa. Combined with a strike on the rail network, no products enter or leave Gauteng and the knock-on effects are enormous. It is to be hoped that Transnet can reach an agreement and has the political will and economic ability to continue its attempts to make Transnet a competitive and efficient backbone to the South African economy.”
Dave Watts, consultant maritime for the South African Association of Freight Forwarders (SAAFF), said that the impact of any industrial action was extremely negative for the economy.
“The length of a strike is relevant; no question the longer it lasts, the worse the impact on most aspects of the economy,” he said.
Efficient Group chief economist, Dawie Roodt, an above-inflation rate wage offer was fair, given the rate of increase in consumer prices but industrial action would cripple economic activity.
"A Transnet workers' strike would be damaging to the South African economy," Roodt said.
"We already have had a negative impact with challenges in passing the budget and US President Trump’s tariffs; all this happened in the last month. To add a Transnet strike would be a huge blow to the economy."
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