South African Dockworkers' Union Seeks New Negotiations to Resolve Pay Conflict

By Katlego Mtshali
may 9, 2025 (Bloomberg) — The primary labour union representing workers at South Africa’s state-owned port and rail operator is set to continue discussions next week to tackle a wage disagreement and prevent a looming strike.

The United National Transport Union (UNTU) announced that negotiations are scheduled for May 14-15 in Johannesburg, the country’s bustling economic hub. UNTU, which advocates for over half of Transnet SOC ltd.’s workforce of 46,000, has turned down the company’s proposal of a 6% pay increase over two years followed by a 5.5% raise in the third year. Instead, they are pushing for a more substantial hike of 10%. In contrast, the smaller South African Transport and Allied Workers’ Union accepted this pay offer back in March.

“we’re optimistic that Transnet will seriously consider our wage demands,” UNTU stated. “This could help us avoid industrial action that might further disrupt an already shaky economy.”

Transnet’s operations are vital for exporting bulk commodities from South Africa; any disruption could significantly impact the nation’s economy, which has seen sluggish growth averaging below 1% annually over the last decade. A previous strike at Transnet in 2022 reportedly cost mining firms around R815 million ($45 million) daily according to estimates from Minerals Council South Africa.

In light of these developments, it’s clear that both sides need to find common ground quickly—after all, no one wants another costly work stoppage when so much is at stake!