“Transnet and the company’s majority union United Transport and Allied Trade Union (Untu) reached a three-year wage agreement today,” it said in a statement, saying the agreement would return the majority of its staff to work.

Transnet announced on Monday (17/10/2022) that it had reached a three-year salary agreement with the union that represents the vast majority of its employees. This marked the conclusion of a two-week strike that had slowed commodity shipments and cost millions of dollars in damages.

More than half of the company’s staff, or Untu members, went on strike on October 6 in demand of a raise based on South Africa’s annual inflation rate, which was 7.6% in August.

Transnet said it had agreed on a 6% wage increase for the current financial year, a 5.5% raise next year, and a further 6% boost in 2024. The deal is effective from April 2022, it said.

“The company’s priority in the immediate is clearing any backlogs across the port and rail system – prioritising urgent and time-sensitive cargo,” Transnet said. Untu officials were not immediately available for comment.

A representative for the minority union, the South African Transport and Allied Workers Union (Satawu), told Reuters that no agreement had yet been reached with Transnet.

Exports of agricultural and mineral products have been hampered by the strike, which has affected Transnet’s freight rail and port operations, particularly the Durban harbor, one of Africa’s busiest.

The Minerals Council of South Africa said mining companies were losing R815m ($45.27) per damy in export revenue due to the strike, as major mineral export harbours were operating at between 12% and 30% of their daily averages due to the strike.