The United National Transport Union (Untu) has warned of imminent industrial action that could cripple port operations and cost South Africa’s economy billions, following the collapse of wage negotiations with Transnet.
Untu General Secretary Cobus van Vuuren announced on Monday evening that talks for the 2025/26 wage agreement had officially reached a deadlock.
Attempts at conciliation through the Commission for Conciliation, Mediation and Arbitration (CCMA) failed to yield a resolution.
“Untu entered the conciliation process in good faith at the Transnet Bargaining Council (TBC), hoping for constructive dialogue,” said Van Vuuren. “However, it became clear that Transnet had no genuine intention to break the impasse.
What we encountered instead was political posturing and a lack of seriousness in resolving the matter.”
He described the employer’s approach as “deeply regrettable,” especially considering the potential socio-economic fallout of industrial action.
With the deadlock now formalised, the CCMA is expected to issue a certificate of non-resolution, which legally empowers Untu to begin strike action.
Van Vuuren confirmed that picketing rules had already been established prior to the talks, enabling a swift move toward mobilisation.
Transnet’s final wage proposal, already accepted by the minority South African Transport and Allied Workers Union (Satawu), included a 6% salary increase for both 2025 and 2026, and a 5.5% hike for 2024.
However, Untu rejected the offer, citing the absence of a clause that guarantees protection against mandatory retrenchments.
“Despite the ongoing risk of job losses under Transnet’s private-sector participation reforms, management has refused to commit to job security. This is unacceptable,” Van Vuuren said.
He warned that Transnet’s approach could once again push workers to take to the streets, recalling the 2022 Untu-led strike that paralyzed Transnet operations and caused economic losses exceeding R1 billion per day.
“This time, we are more prepared, more united, and more determined,” he declared.
In response, Transnet said on Tuesday that it remained committed to resolving the dispute through dialogue.
“Transnet believes it negotiated in good faith, with both the company’s and employees’ long-term interests in mind,” the company said in a statement.
It acknowledged Satawu’s acceptance of the deal within a “facilitated and transparent negotiation process” and welcomed Untu’s decision to ballot its members, noting that it would provide a clearer picture of employee sentiment.
However, Transnet expressed concern that it could not lawfully extend wage increases to Untu members — including permanent, fixed-term, and temporarily disabled employees, as well as trainees — without a signed agreement.
“Until a collective agreement is concluded, Untu members will not receive any wage adjustments, nor increases to benefits such as medical subsidies, housing allowances, pension contributions, and related perks,” Transnet stated, adding that any future agreement would not include back pay.
Despite the setback, Transnet said it remained hopeful that a resolution could still be reached through further engagement.