Unions at South Africa's Transnet announce strike on Thursday

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Unions at South Africa's Transnet announce strike on Thursday

Two labour unions said that Transnet's state-owned logistics firm will go on strike on Thursday because of a wage dispute, which could halt the export of key minerals and other cargo.

Transnet has been operating below capacity due to a shortage of locomotives, poor maintenance and vandalism and theft of its infrastructure, costing miners billions of rand in potential revenue. A strike would affect South Africa's ports, which are also managed by Transnet.

The United National Transport Union UNTU, the biggest labor union at Transnet, said it had served notice to begin industrial action on Thursday. The union at Transnet, South African Transport and Allied Workers Union SATAWU said it would join in the strike from Monday.

Both unions said Transnet's offer of a 1.5% pay increase from Oct. 1 fell below their demands.

The salary increase offer must be tailored to the increased cost of living, cost of housing, medical costs, housing and consumer price index CPI that is currently running at 7.6%, UNTU said in a statement.

Transnet said any increase beyond its current wage offer wouldn't be sustainable.

The wage bill of Transnet makes up over 66% of its monthly operating costs. This is not sustainable, given the current operational and financial situation.

It made a statement on Tuesday about the financial performance of the company.

Transnet applied to the Commission for Arbitration, Mediation and Arbitration CCMA, a state agency that mediates labour disputes, for further talks with the unions.

Both the UNTU and SATAWU said that the mediation, which is due to start on October 12, would not affect their plans to go on strike.