South Africa’s state-owned ports and freight rail company’s biggest union threatened strike action after wage talks collapsed, a move that may curb shipments of minerals and agricultural goods.
“The United National Transport Union [Untu] and Transnet have officially reached a deadlock in the 2025-26 salary and wage negotiations following a failed conciliation process by the Commission for Conciliation, Mediation and Arbitration,” the union said Monday in a statement.
Transnet didn’t immediately respond to a text message seeking comment.
The fraying utilities’ rail and port facilities are key to South African exports of bulk commodities such as coal and iron ore as well as agriculture products including citrus.
A previous strike in 2022 was estimated by the Minerals Council South Africa to cost mining companies about R815 million a day.
A strike would be a blow to South Africa’s moribund economy, at a time when US President Donald Trump’s universal tariffs are threatening to upend global trade.
Untu, which represents more than half of the company’s 46 000 employees, said it rejected Transnet’s unchanged offer for a wage increase of 6% annually in the first two years starting 1 April and 5.5% in the third year. The union is demanding a 10% increase.
The CCMA commissioner will issue a certificate of non-resolution, legally enabling Untu to commence with industrial action, the union said.
“The time has come to mobilise. The time has come to negotiate on the streets,” Untu said.
