Transnet strike hits South Africa ports and rail
Reuters: Jan 31, 2006
DURBAN - Cargo piled up and operations moved at a snail's pace at South Africa's two busiest ports on Tuesday, the second day of a strike in protest at the restructuring of state transport group Transnet, officials said.
The three-day strike at the state-owned company is due to end on Wednesday. It has been declared a complete success by union leaders who say nearly 10,000 workers heeded their call.
Unions said all their members at Durban's port, the biggest in Africa, downed tools while the nearby Richard's Bay Coal Terminal operated at only 30 percent capacity.
"It is a shutdown in Durban, 100 percent successful," Joseph Dube, spokesman for the main South African Transport and Allied Workers Union (SATAWU), told Reuters.
Transnet played down the impact, saying the Durban Container Terminal was still functioning.
"Capacity is at around 40 percent at the Durban Container Terminal," Transnet strategy and transformation executive Pradeep Maharaj told reporters in Johannesburg.
Analysts say the strike could cost the country about 100 million rand a day, hitting the crucial export sector that accounts for about a third of South Africa's gross domestic product.
Dube said all unions, and about 9,500 workers, linked to the rail and logistics group were on strike, adding disruptions would get worse should Transnet dismiss their concerns.
"There are ongoing talks but we have not reached a solution as of now. Transnet must guarantee the salaries and conditions of work for workers affected (by the restructuring)," he said.
Unions plan rolling strikes across South Africa and a national stayaway on March 6 should talks make no progress.
The unions are protesting against the restructuring of Transnet, which will see the disposal of non-core assets, and which unions claim will cost 30,000 jobs.
The government has denied there would be "massive" job losses.
"With regard to job losses, I want to reiterate this: the restructuring of Transnet, for us that means exiting non-core businesses, will not result in job losses," Maharaj said.
Transnet plans to focus on its ports, freight rail and pipelines business, selling off non-core assets to help revitalise the company and push economic growth to 6 percent from the current 4 percent by 2010 through massive infrastructure projects.