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Transnet declares force majeure, citing strike action

06 Oct 2022 - by Lyse Comins
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Transnet has declared a force majeure after workers downed tools at its port and rail facilities across South Africa on Thursday.

The parastatal issued a circular to port stakeholders after the United Transport Union, which represents at least 33 000 of its 35 000 employers, proceeded with a stayaway at 12.01am. The SA Transport and Allied Workers Union is also scheduled to down tools on 10 October.

The stayaway is the first stage of the strike action after trade unions hit a deadlock during wage negotiations.

SATU General Secretary Cobus van Vuuren said on Thursday morning that the stayaway had received “overwhelming support” after 83% of its members voted to strike.

Unconfirmed videos of unidentified protestors blocking the main entrance to Durban Port and burning debris outside the Port of Richards Bay circulated widely on social media. However, UNTU had earlier advised members not to picket as Transnet had not yet determined the picketing rules for the strike, which it had labelled as “illegal and unprotected”. UNTU denied this, saying it had followed all the requirements of the Labour Relations Act and a CCMA commissioner had issued a certificate of non-resolution, opening the door for industrial action.

Transnet Port Terminals Chief Executive, Jabu Mdaki, said his notice to port users was a “formal declaration…of an event of force majeure to all our customers following the strike action declared by the two recognised unions”.

“The strike has been declared against the offered wage increases by Transnet SOC Ltd for the new financial year as well as the fact that no wage increases were approved for the current financial year. This comes after extensive and protracted negotiations with the unions, based on Transnet’s current and forecasted financial position,” said Mdaki.

He said the notice had been issued in terms of Clause 11 of the Transnet Port Terminals Standard Terms and Conditions, which defines an ‘Event of Force Majeure’ to mean an event beyond the control of TPT and the customer, which prevents a party from complying with any of its obligations under any contract, including but not limited to riot, commotion, strikes, go-slows, lock-outs or disorder.

“Accordingly, we hereby declare the occurrence of an event of force majeure, which excuses our performance while the effects of this event are continuing. At this time, we anticipate that portions of our operations will be scaled down. However, and to the extent possible, we will attend to invoke contingency plans and source external stand-in/temporary resources to ensure that the operations continue across the various terminals,” said Mdaki.

He said Transnet would assess the impact on its operations and the force majeure declaration if the strike extended beyond the anticipated period of one week.

“To the extent necessary and with a view to minimise the impact of the force majeure event on our respective contractual obligations, Transnet Port Terminals is open to having consultations with customers who are willing to engage with our executive team to find practical means aimed at overcoming the effect of this force majeure event to ensure acceptable levels of our respective performance and contractual obligations and cargo handling efficiencies across our terminals are maintained,” said Mdaki.

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