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The South African government is sounding the alarm. The strike by employees of the public transport company Transnet continues and affects the export of raw materials, a vital sector for the country’s economy.
Transnet operates the rail freight network and all ports in South Africa. Its employees went on strike last week to demand wage increases amid high inflation.
Negotiations with the company are not progressing. The unions refused, Thursday, October 13, the last proposal of the management, because it advanced a salary increase lower than that of inflation, which reached 7.6% in August. The strike is therefore set to last.
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The movement seriously affects the export of minerals transported by train to the ports. The employers’ organization of mining industries estimates that the movement causes mining companies to lose more than 44 million euros a day.
Port activity is also affected. It is currently running at 30% capacity according to the organization, and in some cases only at 12%. As a result, mineral exports fell sharply. They amount to 120,000 tons per day, whereas in normal times, they reach 476,000 tons.
A situation that greatly worries the South African government. The mining industry is indeed the mainstay of the country’s economy. It employs more than 450,000 people. Thanks to its rich subsoil, South Africa ranks among the world’s leading producers of minerals such as gold, platinum, rhodium, chromium and even manganese.
The strike also affects the agricultural sector. The country is a major exporter of agricultural products. The sector is already worried about the consequences on the quality of fresh products which cannot wait to be exported.