Ministers Gordhan, Nxesi and Didiza call for quick resolution to Transnet wage negotiations to prevent more job losses in SA

Minister of public enterprises, Pravin Gordhan, the minster of employment and labour, Thulas Nxesi and minister of agriculture, land reform and rural development, Angela Thoko Didiza, released a joint statement on Wednesday, sharing the government’s feelings on the strike action currently taking place. Picture: Chris Collingridge.

Minister of public enterprises, Pravin Gordhan, the minster of employment and labour, Thulas Nxesi and minister of agriculture, land reform and rural development, Angela Thoko Didiza, released a joint statement on Wednesday, sharing the government’s feelings on the strike action currently taking place. Picture: Chris Collingridge.

Published Oct 12, 2022

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As parts of the economy in South Africa come to a grinding halt due to the strike at the state-owned enterprise, Transnet, ministers from the country’s government moved to urge that a resolution be reached as soon as possible to stem potential job losses in other industries.

Minister of public enterprises, Pravin Gordhan, the minster of employment and labour, Thulas Nxesi and minister of agriculture, land reform and rural development, Angela Thoko Didiza, released a joint statement on Wednesday, sharing government’s feeling on the strike action currently taking place.

It has been almost a week since organised labour declared a dispute with Transnet over wage negotiations, with members of the unions downing tools at the parastatal.

The ministers said that government is extremely concerned about the negative impact on the South African economy, particularly, those sectors that are dependent on Transnet for their logistical services.

“We need to remind all that if we are able to, as soon as possible, resume exports of agricultural products (eg. Citrus, grapes, berries), mineral resources (eg. Coal, iron ore etc.) and other manufactured products, we will be contributing to sustaining hundreds of thousands of jobs across the economy. During this period, government has been in conversation with all affected parties: labour, industry and the board of directors of Transnet,” the ministers said in their statement.

“We have met with both unions this morning and, in addition, have been meeting the business sector regularly to keep them informed of developments and explore areas of collaboration. Furthermore, this enables us to appreciate the extent of the impact of the strike on industry on the one hand, and the gap that exists in the negotiations between labour and Transnet management on the other. It is the view of Government, that it will be in the interests of the country to find a speedy resolution to this impasse and for parties to continue to engage and, where appropriate, to employ the facilitation services of the CCMA,” the ministers further stated.

The ministers went on to say that the country cannot afford further job losses in other sectors of the economy and the interruption of imports and exports to and from South Africa.

Further adding that government has urged both parties to return to the negotiating table and to adopt an approach which balances the rights of workers, who are affected by rising prices, against the long-term stability and growth of Transnet, and the economy as a whole.

“Government understands that our labour relations regime allows for Labour to exercise their right to strike and picket within the limits of the law. However, Government reiterates its view that the right of workers to picket and strike must not be marred by violence and destruction of property. We appreciate the constructive engagement we have had with the unions. Equally, we acknowledge the offers of industry to assist where they can. Government commends the work of the Department of Labour and the CCMA in assisting the two parties to finalize picketing rules,” the ministers further said.

Meanwhile, Transnet has urged striking workers unions to table their demands, in a bid to bring an end to the impasse after they rejected the employer’s revised offer of up to 5% wage increases.

Today, the troubled state-owned freight and rail logistics company will reconvene negotiations with its two recognised workers unions as the strike has been going on for a week.

The conciliation talks are being facilitated by the Commission for Conciliation, Mediation and Arbitration (CCMA).

The unions are demanding double-digits wage increases of between 12% and 13%, but have indicated that they would consider an offer above the inflation rate of 7.6%.

Transnet spokesperson Ayanda Shezi said the company was committed to finding a speedy resolution to end the strike that had crippled economic activity.

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