As industrial action by ports and rail operator Transnet continues into its 12th day on Monday with the company and labour unions disagreeing on wage increases, bulk mineral exporters have lost R9.8 Billion.
According to the Minerals Council South Africa, the strike action by workers began on October 6 and has cost shippers of iron ore, coal, chrome, ferrochrome and manganese about R815m per day because they’re unable to rail and load exports onto ships.
Allan Seccombe, a spokesperson for the organisation, said on Monday, there is limited export from harbours and rail movements are severely constrained.
Even after the government and an arbitration body joined the discussions between Transnet and its biggest unions, negotiations to reach a pay deal have been deadlocked.
The virtual shutdown of South Africa’s monopolistic logistics company has taken heavy toll on mining and agricultural exports; service businesses and others involved in supply chains.
“Parties are still engaging,” Transnet spokesperson Ayanda Shezi said.
