Transnet wanted companies to pay extra levy to avoid strike, business groups say | Fin24

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Transnet wanted companies to pay extra levy to avoid strike, business groups say | Fin24
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Hoping to avert industrial action, Transnet wanted to impose an 'avoidance of strike' levy on companies, Business Unity SA and Business Leadership SA say. | News24_Business

Business says Transnet initially decided, then backtracked on a decision to impose additional levies on companies.The levy, which would have been enforced from October, would have been conditional on Transnet avoiding a strike. Hoping to avert industrial action, Transnet wanted to impose an"avoidance of strike" levy on companies, Business Unity SA and Business Leadership SA say.

"We have also had sight of a letter from Transnet to relevant businesses, dated 29 September 2022, indicating they [it] charge an additional levy for the period 1 October 2022 to 31 March 2023." to help subsidise the gap between Transnet's wage offer and striking unions' demands. However, the country's two major business lobbies - BUSA and BLSA - clarified that only some businesses had offered to pay the levy.

The Minerals Council, whose members account for more than 80% of Transnet’s rail business and 50% of the group’s income, was concerned that the strike was damaging exports and imports,"threatening not only mining companies but the country’s fragile economy at a time when 44% of people are unemployed".

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