The Road Freight Association (RFA) says Transnet’s choice to invoke a force majeure on Thursday following the choice by some staff to go on a wage-related strike is “ill-placed and wrong”.
RFA CEO Gavin Kelly voiced the business affiliation’s disapproval with the street, port and pipeline firm in a WhatsApp voice notice to the media on Friday.
“Transnet’s invocation of force majeure is ill-placed, its wrong and is not relevant to the current circumstances.”
“Force majeure is normally used when events happen that are totally unforeseen, that were unplanned, that were not in any manner able to be deferred or be countered by an organisation,” Kelly provides.
Kelly stated that Transnet ought to have had the foresight to anticipate such disruptions as wage negotiations are usually not an distinctive occasion for a corporation of its nature. He additional added that Transnet clients mustn’t should bear the brunt of disputes between it and its staff.
Read: Transnet ups wage provide to keep away from extra operational interruptions
Steel business
In a press release issued by the South African Iron and Steel Association (Saisi) on Friday, the business affiliation urged Transnet to achieve an settlement with unions speedily, as drawing out the negotiations will solely cripple an already sluggish financial system.
“Transnet, which operates the country’s freight rail services and ports, is already operating below its capacity. This sub-standard service has had a significant impact on the local steel industry and its ability to manufacture steel to meet its customers’ demands,” Saisi stated.
“In some instances, primary steel producers have had to shut down operating plants due to the unavailability of raw materials, at great cost to the business and the economy.”
“This illegal strike action, compounded by the ongoing energy crisis in South Africa, is likely to have devastating consequences for all sectors of the South African economy, at a time when the country is trying to rebuild following the significant impact of the Covid-19 pandemic,” the affiliation added.
Read: Transnet and unions declare wage impasse, strike looms
Reduced workforce
According to Transnet, wage strikes by staff will hinder its capacity to adjust to its contractual obligations to its purchasers, because the strike will lead to a cutting down of its workforce.
Transnet’s latest force majeure, nevertheless, comes amid wage negotiation disputes with unions the United National Transport Union (Untu) and the South African Transport and Allied Workers Union (Satawu) who’re demanding between 12% and 13.5% wage will increase for his or her members, however Transnet just isn’t budging – retaining their wage provide considerably low at between 3% and 4%.
“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,” Transnet stated in a press release.
“Should the strike extend beyond the anticipated period of one week, Transnet will assess the impact of the strike on its operations and the force majeure event declaration, and further communication in this regard will be forthcoming from Transnet Port Terminals.”
In the final two years Transnet has invoked force majeure at the least 4 instances. The first was carried out because of the affect of the Covid-19 pandemic. Transnet carried out the measure once more following the July unrest which impacted largely KwaZulu-Natal (KZN) and components of Gauteng and once more as results of the April 2022 KZN floods.
Read: Transnet tightens safety as ‘illegal strike’ goes forward
The Untu formally embarked on a stayaway strike on Thursday after the union failed to return to a wage settlement with Transnet on Wednesday. Satawu is ready to fulfill with Transnet on Friday, nevertheless, the union has indicated that it’s going to institute industrial motion on Monday, ought to it not come to an settlement with Transnet.
The strike by the 2 unions is claimed to see roughly 80% of staff away from their workstations, excluding important service staff in port safety and marine companies.
