stopThe work will lead to the suspension of operations at South Africa's major ports and railways.
Against the backdrop of severe global inflation and continued economic downturn, transport workers have been on strike recently.
According to a recent report by Bloomberg, South Africa's major ports and railways are facing a strike crisis.
The report said that due to dissatisfaction with the salary increase plan proposed by Transnet, the state-owned port and railway operator of South Africa, the union has sent a strike notice to Transnet. Once the strike is carried out, it will lead to the suspension of major port and railway operations in South Africa.
The United National Transport Union has reportedly informed Transnet that its members will stop working from October 6.
At the same time, another union, the South African Transport and Allied Workers Union, also said it would begin a strike on October 10.
It is understood that Transnet operates South Africa's major ports and railway networks, including Durban and Cape Town, and is crucial for South Africa to export commodities such as coal, iron ore, chromium and manganese.
Currently, the business of major coal producers in South Africa has been affected due to insufficient rail capacity of Transnet.
Regarding the labor dispute involved in this strike, Transnet stated that the company's current wage expenditure accounts for more than 66% of monthly operating costs. Considering the current "financial and operational challenges", Transnet's proposal to the union for a salary increase of 15% and a one-time payment of 10,000 rand (about 563 US dollars) before tax is reasonable.
But the National Transport Union of South Africa believes that the pay increase must be consistent with the cost of living and the current inflation rate, which is currently 7.6% per year.
Transnet is in talks with the unions, according to people familiar with the matter.
Meanwhile, Transnet has filed an application with the South African Arbitration Commission in an attempt to break the deadlock in negotiations with the unions, and the mediation process is expected to start on October 12.
Editor of this issue: Effy Reviewer: Wang Yu
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