TRANSNET CONDEMNS VIOLENCE, VOWS TO ACT AGAINST CRIMINALITY

Transnet strongly condemns the violence and intimidation that have accompanied a strike called by Satawu, one of the two recognized trade unions, and calls on Satawu to ensure peaceful protest action.

The company has tabled a generous and fair wage increase offer, supposedly the reason for today's strike, which has not been effectively communicated to union members. At 11% increase on all pensionable earnings, our offer, arguably amongst the highest in the country, is twice the rate of inflation, which puts significant cash into the pockets of our employees. We believe our bargaining unit employees - the non-managerial cadre - have to be given space and time to seriously consider management's offer, which is good for them, Transnet and the country, without intimidation.

Earlier today, a group of protesters in Umbilo, one of our operations in Durban, deviated from the agreed picket area and forced their way into our premises, in clear breach of the agreement between Transnet and the unions. The same group, which was not restrained by the union's leadership, physically attacked and stripped naked subcontractors at work. As a result of the incident and the fracas that ensued, police had to use rubber bullets to restore order.

Twelve people were injured and six are now in hospital.

Transnet has briefed its lawyers to apply for an urgent interdict against Satawu that will ensure that our assets and employees are protected during the strike action. Further, Transnet is pressing criminal charges against the perpetrators of violence. Disciplinary action will also be instituted against those who have breached strike rules.

According to Transnet's recognition agreement, the unions are responsible for discipline and order during a strike. Picketing rules have been agreed between management and Satawu in all regions.

We find this conduct of Satawu members both deplorable and unacceptable. The company has collected video footage which will be used in pursuing the intended criminal and disciplinary actions. Whilst we have asked the police to exercise restraint in dealing with protesters, we are working closely with law enforcement agencies to bring those behind today's violence to book and to ensure that this does not recur.

We reiterate our appeal to the leaders of the striking employees to instill discipline and ensure their members refrain from violence against those who choose to work during this period.

Our contingency plans, including the redeployment of resources to critically needed areas and prioritizing the movement of key commodities, have been deployed and have minimized the disruptions on our critical flows.

Again, we wish to apologise to our customers for the interruption to our service to them. Our commercial team is in constant contact with key customers about alternative plans to render service to them and to discuss the impact of the strike on their service.

We are grateful to the many customers who have shown extreme understanding and have assisted in moving critical flows.

Notes to editors:

There are two recognized unions at Transnet - namely Utatu and Satawu

Utatu represents 45% of our employees in the bargaining chamber and Satawu represents only 39%

Transnet has revised and improved its offer to an 11% increase on pensionable earnings Transnet's original offer was an 8% increase across the board Unions from the beginning of the wage negotiations until now are demanding a 15% increase with additional benefits

The larger union, Utatu, is currently consulting its members on Transnet's new and improved offer, while negotiators for the smaller union, Satawu, have unilaterally rejected the offer without consulting members

This is a protected strike, but no work no pay applies

Transnet has activated its contingency plan to ensure critical flows and commodities

Transnet employs nearly 54 000 employees in its five operating divisions: Transnet Freight Rail, Transnet Rail Engineering, Transnet National Ports Authority, Transnet Port Terminals and Transnet Pipelines

About 85% of Transnet's employees are unionised

Statement issued on behalf of Transnet Limited by John Dludlu, spokesperson, May 10 2010

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