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[Ferro-Alloys.com] Mining sector would be hardest hit by Transnet strike, says economist

The Minerals Council South Africa forecast a revenue loss of R50 billion this year.

A leading economist warned that the strike action could affect several industrial sectors and export earnings, delay shipping and increase storage costs as Transnet’s marathon wage talks with unions continued yesterday at the Commission for Conciliation, Mediation and Arbitration (CCMA).

Mining would be the hardest hit by the countrywide industrial action. The Minerals Council South Africa forecast a revenue loss of R50 billion this year for iron ore, coal, chrome, ferrochrome and manganese exporters – as measured by delivered tonnages against contracted rail volumes.

“We don’t want the strike action at Transnet to compound the revenue losses our bulk mineral exporting members are already anticipating,” said Minerals Council spokesperson Allan Seccombe.

“We trust Transnet and its unions will reach an amicable settlement as soon as possible, with minimal disruption to bulk mineral exporters,” said Seccombe.

While labour – represented by the SA South African Transport and Allied Workers Union (Satawu); and the United National Transport Union (Untu) – have pushed for an increase of between 12% and 13.5%, Transnet has offered 3% with effect from 1 April, 2022.

The state-owned enterprise (SOE) based its low wage offer on a 66% cost towards a wage bill – a reasoning challenged by Alternative Information and Development Centre (AIDC) senior economist Dr Dick Forslund, who maintained that top executives pocketed millions in salaries and pensions.

Said Forslund: “The 20 Transnet directors are paid millions, with the best-paid earning R7.8 million – making the company lose all the moral authority to negotiate wages for ordinary workers.”

University of Johannesburg associate economics professor Peter Baur warned that many industries would be affected by the strike action.

“The impact could spill over on other industries. Manufacturing, agriculture, construction and retail sectors, could be affected. The impact of the strike action for any extended period could further weaken the overall economy by weakening productivity – adding to unemployment across extended sectors of the economy,” cautioned Baur.

While no agreement could be reached between the SOE negotiators and the two unions by late afternoon, Transnet spokesperson Ayanda Shezi was optimistic.

“We are at the CCMA with all parties,” she said. Satawu general secretary Jack Mazibuko and Untu general secretary Cobus van Vuuren would not comment on the wage talks.

Source: Mining sector would be hardest hit by Transnet strike, says economist

• [Editor:tianyawei]