South African port strike toll grows as operator to meet unions

South Africa’s state-owned port and rail logistics company and labor unions will meet again Wednesday in the latest effort to end a strike over wages that’s progressively slowing the flow of goods in and out of the nation.

The industrial action that started Oct. 6 has severely reduced staff at key ports that export iron ore and coal from South African mines. Shipments of agricultural goods are also at risk, with fruit farmers raising concerns about the limited shelf life of their products. 

Transnet SOC Ltd. will meet with its two biggest labor groups, the United National Transport Union and South African Transport and Allied Workers Union, the company said in a statement. “Transnet is hopeful that the unions will formally table their position, to enable the company to assess its feasibility.”

The company’s latest proposal for pay raises of up to 5% and a boost to housing and medical allowances of 1% was rejected by Untu, the union said in a letter to its members. The labor group advised Transnet that it would consider an increase above 8%, a position that resulted in a deadlock, Carestone Damons, a member of Untu’s bargaining team, said in a mobile phone message.

Coal and iron ore miners have warned that a prolonged strike will curtail exports and hobble production. Russia’s invasion of Ukraine has boosted demand for the dirtiest fossil fuel and revitalized a shipping route to Europe. South Africa is also the world’s second-largest exporter of citrus fruit, trailing only Spain.

Businesses have offered to pay increased fees for Transnet rail services along with a strike-avoidance levy until an agreement is reached, according to Johannesburg-based Business Day. The newspaper cited proposals contained in an industry publication, Cargo Movement Report.