Business Unity South African (BUSA) and Business Leadership South Africa (BLSA) on Thursday said in a joint statement that they were “deeply concerned about the ongoing strike by Transnet workers”.
Both business organisations said they were concerned about the impact the strike was having “not only on the logistics industry in this country in the short term, but also supply chains and South Africas reputation in the longer run”.
Ealier on Thursday, Transnet tabled a three-year wage offer.
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The South African Transport and Allied Workers Union (SATAWU) and the United National Transport Union (UNTU) have rejected the latest Transnet-tabled three-year wage offer to end the ongoing strike.
SATAWU and UNTU are demanding wage increases of between 12 and 13.5%.
Commenting on the impasse, BUSA and BLSA said in their joint statement: “There are no easy solutions on the table here nor short term fixes given the financial state of Transnets balance sheet, higher levels of inflation, the fiscal constraints and the stresses that business are under in this challenging economic environment.”‘
BUSA and BLSA said they have pledged to work with the government and Transnet, where possible, to ensure continued limited operation of the ports, where possible, and similar contingency plans, to prevent overcrowding in some ports and to support Transnets security measures.
“Whilst this is firstly an industrial relations dispute, we must also recognise that there are significant knock-on implications for the economy as a whole, some of which may not be immediately obvious,” said the joint statement.
“Such examples include the risks to the importation of medical items and of key inputs to the chemical and mining industries.
“Business is also concerned that if this lasts more than a few days, cargo ships will not just skip slots at South African ports but start taking South African ports out of schedules in the months ahead.
“‘This will add significant costs to either airfreight items or truck goods to and from other African ports which will add to the inflation pressures South Africans are facing.”
BUSA and BLSA said that is why a swift, and sustainable resolution was needed.
Cas Coovadia, CEO of BUSA said: We need a quick, sustainable resolution to this strike, not ad hoc solutions.
“The strike risks severe damage to the economy not just in the short term but also the longer term if it drags on and South Africas reputation for logistics gets further tarnished.
Transnet has been facing longer term, serious, operational and financial problems even before the start of the strike last week which has increasingly been affecting business and productivity.
These problems are structural in nature and need deep, often complex, solutions.
BLSA chief executive, Busi Mavuso, warned the strike action would make Transnet’s financial position far worse after the group reported that revenue was still below pre-Covid levels for the financial year ending March 31, 2022.
“BUSA and BLSA, whilst recognising the challenges faced by workers due to higher inflation, urge all parties to this strike to redouble their efforts to find a rapid and peaceful resolution of this strike in a sustainable way that is in the national interest, cognisant of the pressures business, Transnet and the fiscus are under,” said the joint statement.
