Strikes Again
Transnet strike will affect the sea freight industry
It seems that a strike in South Africa that will affect the port, rail and pipeline industry is due to commence next week and this sudden announcement has many of us scratching our heads in confusion. This strike is set to affect all of these industries substantially as there are more than 50 000 workers that are said to be involved in the strike action. So why has this strike been swept under the carpet and how will it affect the sea freight industry as well as other related cargo transportation sectors?
The strike that will affect the whole of the South African shipping and transport agency is set to begin on the 10th of May and organisations such as SATAWU (South African Transport and Allied Workers Union), UTATU (United Transport & Allied Trade Union)and Sarwhu are all involved. One of the most obvious contenders that will be affected by this strike is Transnet. Even though Transnet have not received any formal notice of the strike the spokesperson for the company says that they will do what they can in order “to minimise disruptions and protect our assets.”
PRASA (Passenger Rail Agency of SA) have also responded to this strike by saying that they were not at all happy with the strike and that it would negatively affect the World Cup in June. The sea freight industry will also feel the effect as there already is congestion at the Durban and Cape Town ports, with many container ships anchoring in the area.
The shipping sea freight industry is a growing one in South Africa and this strike action has come at a bad time, especially as the industry is recovering well in 2010. The South African shipping industry is being used for various exportation and importation of bulk products and car manufacturers are scared that this strike will affect their automotive manufacturing processes. These manufacturers are extremely dependant on the freight industry and their local shipping agency as parts and finished products need to be constantly shipped in and out of the country.
The strike is commencing owing to the fact that the Union didn’t not receive the 15% increase that it requested, but rather turned down the 8% increase that Transnet offered workers. As news pours in that the strike will definitely continue, the transportation industry is beginning to feel nervous and wonder how much loos will occur during this strike period.
According to latest source, negotiation was rejected when a new wage offer was not accepted and the strike is now underway.
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