SOUTH AFRICA: National transport strike hits more industries

Record ID: 340309

  • Title: SOUTH AFRICA: National transport strike hits more industries
  • Date: 15th May 2010
  • Summary: JOHANNESBURG; SOUTH AFRICA (MAY 14, 2010) (REUTERS) POLICE LEADING PROTESTING WORKERS STRIKING WORKERS MARCHING DOWNTOWN STRIKING WORKERS CARRYING PLACARDS PLACARD READING: "NO 15%, NO TRAIN, NO WORLD CUP" MORE OF PROTESTERS MARCHING THE WORKERS LEADERSHIP, LEADING THE PROTESTERS GAUTENG PROVINCIAL GOVERNMENT BUILDING WORKERS HANDING A MEMORANDUM TO AN OFFICIAL PR
  • Embargoed: 30th May 2010 13:00
  • Keywords:
  • Location: South Africa
  • Country: South Africa
  • Topics: Domestic Politics,Transport
  • Reuters ID: LVABY3B0AHF6YKS99DQ1EEF6NOX0
  • Story Text: A national transport strike in South Africa took its toll on the country's exports of metals and fruit as unions planned to meet with logistics group Transnet on Friday (May 14) to try resolve the pay dispute.
    The strike at Transnet, now in its fifth day, widened on Wednesday after a second union joined the stoppage, the latest public protest ahead of next month's soccer World Cup tournament, being held in Africa for the first time.
    Nearly two-thirds of Transnet's 54,000-strong workforce joined the labour action, bringing the country's rail and port operations to a halt and threatening deliveries of metals, fruit and wine to customers in Europe and Asia.
    Pradeep Maharaj, Transnet's HR Executive, said the container sector in ports and rail operations were hardest hit so far.
    Transnet does not operate passenger services and is not a big transporter of coal to power plants, but a prolonged strike could affect imports, internal fuel supplies and exports of fresh fruit, grains, iron ore and coal.
    He said the country's citrus industry, worth an annual 4.5 billion rand (600 million US dollars) and second-largest producer after Spain, is currently storing oranges and grapefruits destined for Europe and Middle East in fridges, but space is limited.
    The National Chamber of Milling said most of the country's maize was transported by road, but wheat imports could be hit.
    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 also said they were running out of space and would need to curtail production if they cannot ship products to ports.
    South Africa is one of the world's biggest coal exporters, mainly to power stations in Europe and Asia.
    Global miner Xstrata on Wednesday declared a force majeure, halting shipment of ferrochrome, a key ingredient in stainless steel, and chrome ore. Samancor, the world's 2nd-biggest producer, did the same, traders said.
    The United Transport and Allied Trade Union (Utatu) and the South African Transport and Allied Workers Union (Satawu) represent 85 percent of Transnet's workforce of 54,000 people.
    Utatu said it would stick to its 15 percent pay rise demand when talks reopen, above the 11 percent offered by Transnet, fuelling criticism among analysts who say pay rises triple the inflation rate of 5.1 percent would hamper South Africa's recovery from its first recession in 17 years.
    Economists said it was too early to put a figure on losses from the strike, especially given built up stocks ahead of the strike, but said it could be in the millions of rand per day.
    Central Bank Governor Gill Marcus said on Thursday high wage settlements not matched by productivity increases could pose a risk to the country's inflation outlook.
    Utatu and Satawu met the mediator from the Commission for Conciliation, Mediation and Arbitration on Thursday, and are due to meet with the mediator and Transnet on Friday.
    Transnet said it was willing to discuss options other than a further wage raise to end the strike, but stressed that going beyond 11 percent was unaffordable and unsustainable.
    In a separate move, Satawu said it may strike over pay on Monday at the passenger transport service Metrorail, with Utatu expected to join, which could affect millions of commuters.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2011. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: Audio restrictions: This clip's Audio includes copyrighted material. User is responsible for obtaining additional clearances before publishing the audio contained in this clip.
Register