The main labor union at South Africa’s state port and rail company, United National Transport Union (UNTU), is in discussions to resolve a wage dispute and prevent a potential strike. Negotiations are scheduled for May 14-15 in Johannesburg.

Transnet SOC Ltd. offered a 6% pay increase over two years and 5.5% in the third year, which UNTU rejected, pushing for a 10% raise. The South African Transport and Allied Workers’ Union accepted the initial pay offer in March.

UNTU stated, “We remain hopeful that Transnet will consider these wage proposals to avoid industrial action that could further destabilize the fragile economy.”

Transnet’s rail and ports play a vital role in South African exports, and any disruption could impact the economy, which has seen sluggish growth in recent years. A previous strike in 2022 cost mining companies an estimated 815 million rand ($45 million) per day, according to the Minerals Council South Africa.

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