Transnet accused of double standards

The major transport union, the SA Transport and Allied Workers’ Union (Satawu), is sour at Transnet’s wage bargaining strategy, and has condemned the fact that it took them six weeks to shift from the original zero percent offer to the current “2% now and 2% in October” offer, according to Satawu policy and research officer, Jane Barrett. She also accused Transnet of delay tactics, and stalling each step in the bargaining council procedure until the conciliation stage – where the conciliator has now demanded that both parties must look for a mandate on Transnet’s new, and first, offer, and present their answers this week (after FTW print deadline). And in this case, several private sector members of the freight industry appeared to agree with union thinking. Questioned by FTW before the final offer was revealed late last week, senior freight industry sources tended to agree with the union’s standpoint. This particularly related to the original Transnet offer of zilch, and in light of the fact that each of the company’s business units had imposed an across-the-board tariff increase from April 1 – like the port terminals’ 12% a-t-b cargo handling tariff rise. “There’s an increased charge on cargo owners and inflation of 8%-9%, and they’re offering absolutely nothing to the workers,” said LM Pelser, executive director of the SA Shippers’ Council (SASC) – whose members are responsible for about 80% of the cargoes travelling through the SA port system. “They’re just not playing the game.” A Cape shipping industry source agreed about the pointlessness of Transnet pitching up at the negotiating table with nothing to offer. He also had a suggestion for the parastatal transport organisation’s management. “I think all the fat cats should take a cut,” he told FTW, “from business unit executive upward. Kevin Martin, MD of Freightliner Transport, and vice-chairman of the Durban harbour carriers’ section of the SA Association of Freight Forwarders (Saaff), suggested that basic economic theory and Transnet’s economic policy seemed contradictory. “It’s an international economic truth that, where supply exceeds demand, prices fall,” he said, “and, where demand exceeds supply, prices rise. “But in Transnet’s case, they seem to think that – even with their supply well exceeding the demand – they can demand an over-inflation increase in their prices.” Also, there’s a basic truth in the private sector freight industry. If you’re one of the exceedingly few transporters who have managed to get any increase in rates at all, Martin added, you have to make sure that workers get a cut, because they’re behind your company doing any business at all, and are definitely worth hanging on to – even in tough times. Alwyn Rautenbach, MD of Airlink Cargo and chairman of the Air Cargo Operators’ Committee (Acoc), commented: “If we look at inflation – particularly the bread-and-butter stuff – I think it’s a bad move by Transnet. “Especially when it’s putting increases on all its tariffs for the industry, and still offering nothing to the workers – the vital cogs in the company’s machine. “If such a move resulted in a strike at Transnet, it would seriously disrupt the economy and the country.” And Rautenbach also pointed an accusing finger at management. “If it weren’t for bad bosses,” he told FTW, “there’d be no need for unions.” This general thinking was also expressed by the SA Association of Ship Operators and Agents (Sassoa). In the absence of a formal notification from Transnet and without knowing the details of the negotiations, according to executive director Thato Tsautse, Saasoa had addressed a letter to Transnet Port Terminals (TPT). This acknowledged the fact that, like all other organisations, Transnet needed to contain costs in the current economic climate - and that staff costs were no doubt a sizeable proportion of their costs. But, she added: “We also acknowledged that it was to be expected that their staff were feeling the impact of inflationary pressures and would no doubt be looking for the best possible increase they could get. “As is often the case in such opposing positions, it is quite possible that a deadlock could be reached in negotiations. We have therefore urged them in our letter to try and expedite the negotiation process and to do their best to reach a speedy and amicable agreement with their staff. This would avoid a strike situation, which would probably have a bigger negative effect on shipping line operators than any other single sector in the logistics chain.” And, although Transnet has now made an offer, this week’s meeting with the unions and the conciliator will decide where the issue goes next. But, said Barrett, if a solution acceptable to both parties is not reached, the Satawu strike is still on the cards – a move which the union is certain would bring the SA port and landside cargo movement to a grinding halt.