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Transnet Mediated Talks On Wages Commence

SOUTH AFRICA
  • As a reminder, the port and freight-rail operator confirmed a force majeure late last Thursday, announcing that operations will be scaled down following strikes from workers at two separate unions. With the 3% offer submitted by Transnet management earlier in the week falling short of inflation, workers have demanded more. Following the deadlocked negotiation, Transnet begins mediated wage talks today with two unions.
  • Transnet spokeswoman Ayanda Shezi said Sunday that the company has “contingency plans” in the event of a stoppage, she said, urging union members to accept the “fair and reasonable” offer. Staff participating would face disciplinary action, Shezi added.
  • Supply chain disruptions could cost South Africa’s economy as much as 1 billion rand ($55.5 million) per day, said Juanita Maree, chief executive officer at the South African Association of Freight Forwarders. (Bloomberg)

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