As has been reported in the media over recent weeks, Transnet has tabled a revised wage offer for above-inflation increases, which has been rejected by the United National Transport Union (Untu) and the SA Transport and Allied Workers Union (Satawu).
This has raised the threat of possible industrial action, which could once again disrupt port operations and inflict more pain on an already struggling economy.
South African ports, more specifically the container terminals, have been under intense scrutiny due to continuous equipment failure, low productivity and adverse weather conditions. But terminals across the country have recently shown signs of improvement in both efficiency and productivity, and a strike would undo all the good that has been done.
Strikes have become a frequent occurrence, with the majority being sanctioned and held peacefully. There have, unfortunately, also been illegal and violent strikes in recent years, but this cannot be used as a qualifying factor when determining an essential service.
Transnet Port Terminals (TPT) is a division of Transnet SOC Limited, which owns and operates 16 terminals across seven South African ports with approximately 9 000 employees. These terminals are a vital link in the global supply chain, with the import and export of goods being the lifeblood of our economy.
In May 2010, a major strike by Transnet workers led to disruptions in rail and port operations, impacting numerous industries. This strike also resulted from failed wage negotiations. Exporters of fruit and wine and importers of meat were severely affected, with some facing lost sales, cancelled orders and potential damage to business relationships. More alarmingly, several manufacturing plants across the country faced a complete shutdown due to the non-delivery of raw materials and machine parts. It was estimated that the three-week strike cost the country R7 billion in total.
At the height of the strike, which had become violent, the Cape Chamber of Commerce submitted an application to the Essential Services Committee to designate TNPA, TPT and Metrorail as essential services. In its response, the Committee found that the application was based on the economic disruption and damage caused to businesses and the national economy as a consequence of workers in the listed services embarking on industrial action. In terms of the Labour Relations Act, an interruption of services would “endanger the life, personal safety or health of the whole or any part of the population”. Based on this finding, the Committee deemed it unnecessary to investigate further.
Fast-forward to March 2020 and the lockdown due to Covid-19. Essential goods and services were key to maintaining the health and well-being of the population, and almost the entire logistics chain became an essential service. The circumstances were exceptional, but it showed what could be done, and many lessons were learnt from a very distressing situation.
Forward again to present day and it has become obvious that all our ports need to function at maximum ability for the good of the economy, which in turn is for the good of the people and their well-being. Food and medicines are just two critical products moved through the terminals, which are already under pressure. With a possible strike looming, why not have TPT declared an essential service?
