Transnet claims most employees are back at work

Transnet says it has begun implementing recovery plans across its operations and that employee attendance is up across the board, averaging between 70% and 80%.

It says it expects more employees to return to work over the next two days.

In a statement issued on Tuesday evening, the state-owned ports, rail and pipelines group indicates that it is prioritising the safety of employees and assets as it prepares to ramp up operations.

“Engagements with customers and industry are ongoing, with joint planning to clear backlogs created as a result of the industrial action.”

Disconnect

However, port insiders dispute the company’s statement – saying hardly any workers pitched up at the Durban Port container terminals on Tuesday.

“The reality is that the container terminals, which are the biggest ticket items in all of this, ran at 30%, with operations expected to reach 50% with the added labour force later on in the day,” notes the insider.

“But almost no one showed up today [Tuesday].

There is a big disconnect between what the company is reporting and what is actually happening on the ground.”

Transnet says in its statement that all eight of its commercial ports remain accessible and the focus at its ports remains on clearing the backlog of vessels at anchorage and alongside the quay, including bulk, break bulk and containers.

“Evacuation of imports out of the port is underway, in order to create fluidity within the terminals, with the immediate focus being on perishable and time-sensitive cargo.”

Read all our Transnet coverage here.

Aggravating factor

Speaking to Moneyweb, Andrew Pike, head of ports, transport and logistics at law firm Bowmans, says the rejection of the three-year wage agreement by South African Transport and Allied Workers Union (Satawu) will further aggravate the backlog at ports.

This comes after Transnet’s majority union, the United National Transport Union (Untu), signed the agreement on Monday.

“Although Untu is the majority union, it is not the majority by a wide percentage,” says Pike.

“Any organisation, like Transnet, operating below full capacity means the damage will continue.”

Meanwhile, Satawu said on Tuesday night that it had met with Transnet’s management and requested that it be given until Thursday (20 October) to engage with its constituencies regarding the latest developments.

It says it will weigh in on its position on the matter on Wednesday.

Listen: Satawu’s Anele Kiet says Untu has ‘insulted’ it by signing a 6% wage agreement with Transnet and it intends on intensifying the strike (or read the transcript here)

Pike says that although Satawu might prolong its strike for as long as it can, its members might equally lose courage sooner than the union’s officials.

“Satawu members will keep losing wages and I’m not convinced that the benefit will outweigh the loss.

“What really bothers me is that if you conduct an assessment of the whole supply chain, you will see that this has a knock-on effect from the port right through to the till,” says Pike.

“This means commodities and product prices will be picked up by the man on the street.”

Exports under pressure

Echoing a similar sentiment, Nelson Mandela Bay Business Chamber CEO Denise van Huyssteen tells Moneyweb that although the chamber welcomes the signing of the three-year wage agreement by Transnet and Untu, it remains concerned that Satawu members are still on strike.

“This means that the full complement of employees [has] not returned to work and that port container terminals and rail operations remain impacted,” she says.

She adds that it is vital for Transnet and Satawu to expedite negotiations to reach an amicable solution and resume operations at full capacity.

Van Huyssteen points out that ongoing disruptions at Transnet have a detrimental impact on local exporters who are still struggling to recover from tough trading conditions since 2020, when the Covid-19 pandemic disrupted global supply chains, and more recently the impact of the Russia-Ukraine war on sourcing decisions and shipping line routes.

“Already shipping lines are calling our ports less frequently due to their overall inefficiencies, and these ongoing labour disruptions and instability may result in the continued acceleration of this concerning trend,” she adds.

“Very concerning [is that] this further damages South Africa’s reputation as a reliable importer and exporter of goods.”

Transnet, in its statement on Tuesday, says that on the rail side, trolley trips are being undertaken to assess the safety of its railway network and inspections of rolling stock are underway to ensure trains are safe before resuming services at full capacity.

It says repairs to sections of the network affected by theft and vandalism are also underway.

Listen as Satawu deputy general secretary Anele Kiet tells Fifi Peters Untu ‘insulted’ Satawu by signing a 6% wage agreement with Transnet (or read the transcript here):

Nondumiso Lehutso is a Moneyweb intern.