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Grave concern over the impact of the Transnet strike on economy

Neelam Rahim | neelam@radioislam.co.za

2 min read | 14:04 pm CAT

South Africa is at risk of an economic collapse as a strike at Transnet hits ports with billions of rand on the line. Two unions, Satawu and UNTU, who represent over 30-thousand employees, officially downed tools on Monday over a wage dispute. Transnet has maintained that its port terminals have not reached a standstill. Still, logistics businesses have warned that there may be a catastrophic economic fallout if operations at the state-owned logistics giant’s ports in Durban and Cape Town face prolonged suspension.

Highlighting their concern in discussion with Radio Islam International, Business Unity South Africa CEO Cas Coovadia analysed the current strike as having severe implications for businesses and the economy.

Raw materials, plants and machinery needed for imported manufacturing cannot reach the ports in time. This impacts manufacturing capability and could further negatively impact jobs if continued for much longer.

From an export point of view, Coovadia said the agricultural sector would take a severe knock as citrus fruits and others are also exported.

Activity has decreased substantially, and some port parts are at a standstill.

Coovadia advises that Unions should consider a more responsible way of conducting actions. 

Listen below to the interview with Moulana Sulaimaan Ravat and Cas Coovadia on Radio Islam’s podcast.

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