SOUTH AFRICA: Thousands of commuters left stranded around Johannesburg and other townships, as South Africa's transport strike enters its second week

Record ID: 338855

  • Title: SOUTH AFRICA: Thousands of commuters left stranded around Johannesburg and other townships, as South Africa's transport strike enters its second week
  • Date: 18th May 2010
  • Summary: JOHANNESBURG, SOUTH AFRICA (MAY 17, 2010) (REUTERS) VARIOUS OF STATIONERY TRAINS PARKED UNDER A BRIDGE WITH JOHANNESBURG SKYLINE IN THE BACKGROUND COMMUTERS CROSSING BRIDGE MORE OF TRAINS PARKED UNDER BRIDGE SOWETO, SOUTH AFRICA (MAY 17, 2010) (REUTERS) SMOKY SOWETO SKYLINE EMPTY TRAIN STATION VARIOUS OF LONG QUEUES OF COMMUTERS WAITING FOR BUSSES COMMUTERS BOARDING
  • Embargoed: 2nd June 2010 13:00
  • Keywords:
  • Location: South Africa
  • Country: South Africa
  • Topics: Employment,Transport
  • Reuters ID: LVA6B66D6UEA2FUMZVJARLIQD5FL
  • Story Text: South African unions have widened a transport strike on Monday (May 17) by halting the country's Passenger Rail Agency (Prasa), after talks between striking transport workers and logistics group Transnet have failed.
    The strike has halted all commuter rail operations and affected millions of passengers.
    The Satawu and Utatu unions estimated the two-week long Transnet strike was set to intensify with no resolution in sight. They said management effectively walked away from any negotiated settlement on Sunday (May 16) after stating an unwillingness to budge on any item of money substance.
    The ongoing strike has hit exports of metals, fruit and wine to customers in Europe and Asia after nearly two-thirds of Transnet's 54,000-strong workforce joined in.
    It is the latest protests in the country ahead of next month's soccer World Cup, which is being held in Africa for the first time. There are concerns that the strike could affect imports of equipment for the event.
    The South African Transport and Allied Workers Union (Satawu) and the United Transport and Allied Trade Union (Utatu) represent some 85 percent of Transnet's staff.
    The unions have been in mediated talks with Transnet over the weekend. The unions said they had lowered their wage rise request to 13 percent from 15 percent, closer to Transnet's offer of 11 percent, but still no agreement could be reached.
    Analysts and the central bank have criticised unions, saying that pay rises well above the 5.1 percent inflation rate would slow South Africa's economic recovery. The lowest paid worker at Transnet earns $470 a month, a union official said.
    Anglo American Plc's iron ore unit in South Africa declared a force majeure on shipments last week, joining other global metal exporters such as Xstrata, which said it could not supply ferrochrome to its customers.
    The unions said 60 percent of Transnet's port, rail and fuel operations were disrupted, with no imported goods being offloaded.
    Transnet does not operate passenger services and does not transport much coal to power plants, however a prolonged strike may hit imports, fuel supplies and exports of iron ore and coal.
    The impact on coal and iron ore exports has been limited due to built-up stocks at ports, but the firms have said they would start feeling the crunch if the strike goes beyond this week. Miners said they were running out of storage space and would need to cut production if they cannot ship products to ports.
    Producers of fruit said they were already running out of storage for produce they could not ship and wine makers said exports had stopped.
    The unions called on other trade union federations to escalate their support for the strike.
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