Cape Town - Western Cape Premier Alan Winde has called for an end to the ports strike which is costing the South African economy up to R1 billion a day.
Winde, who was briefed by Provincial Finance and Economic Opportunities Minister Mireille Wenger on Wednesday, was assessing the impact on the economy, the agricultural sector in particular, as the Transnet workers’ strike enters its second week today.
In 2021, the Western Cape exported 90% of its primary agricultural products via the Port of Cape Town.
While marine services were functional, operations especially at the container terminals were limited.
“This industrial action comes at a critical time. We are particularly concerned over yet another setback to our economy, which is still emerging from Covid-19 and continuously grappling with the energy crisis. We have to double down on growing our economy and this strike is proving to be a major impediment,” he said.
The premier appealed to all parties to negotiate in good faith, in order to work towards the goal of growing the economy and creating jobs.
Winde also offered support to Transnet in implementing its Business Continuity Plan (BCP) processes.
Data estimates collected by the SA Association of Freight Forwarders (SAAFF) show that the indefinite strike by workers affiliated to SA Transport and Allied Workers (Satawu) and United National Transport Union (Untu) is costing the economy between R100 million and R1 billion every day.
Calling for the urgent resolution of the wage negotiations, SAAFF chief executive Juanita Maree said the ongoing impasse between Transnet and the unions was having a devastating effect on the economy.
Maree said it was much worse than the ongoing energy crisis and that the total economic cost of the strike was likely to run into billions daily.
“A one-day loss in port activity results in, operationally, a minimum of 10 days of recovery,” Maree said.
The unions embarked on protected industrial action on Thursday, October 6, across all provinces.
Both Untu and Satawu have rejected Transnet’s latest revised wage offer.
The unions are demanding double-digit wage increases of between 12% and 13%, but have indicated that they would consider an offer above the inflation rate of 7.6%.
Untu said it eagerly awaits a salary offer that is aligned with the increased cost of living.
Transnet spokesperson Ayanda Shezi said the company remains committed to a speedy resolution to the current impasse.
Lending support to the strike action by its affiliate Untu, Federation of Unions of South Africa (Fedusa) general secretary Riefdah Ajam said the strike came after Transnet delayed the salary negotiation process for months.
Ajam said: “Fedusa notes the willingness of Transnet to continue to negotiate and improve conditions in their workplaces. However, Transnet management needs to table offers that can be taken into consideration and that can also afford its workers to have some financial freedom.”
National Union of Mineworkers member and SA Communist Party Western Cape secretary Benson Ngqentsu shared a message on Facebook with Transnet workers affiliated to Untu and Satawu in Cape Town:
“I am considering joining those in Saldanha and Mossel Bay. The present salary or wage negotiations and ultimately industrial action must be used as a platform to reject neoliberalism and austerity economic trajectory.”