Mediator To Negotiate End To South African Transport Strike

A mediator in South Africa will help Friday to break a deadlock between state-owned Transnet Ltd. and its largest unions and end a strike by thousands of port, pipeline and freight rail workers now in its fifth day.

Wage negotiations with the senior national commissioner at the Commission for Conciliation Arbitration and Mediation are scheduled for after midday in Johannesburg, the South African Transport & Allied Workers Union said.

Satawu and the United Transport & Allied Trade Union, which together represent about 85% of Transnet's 54,000 employees, have rejected a final offer of an 11% pay rise from the company and are sticking with demands for a 15% increase.

"We do not anticipate that the process will be quick or easy, but it marks the start of a process towards resolution of the deadlock," Satawu said in an emailed statement.

The unions plan to stage a mass march of workers through central Johannesburg Friday.

The strike has already affected shipments of iron ore, ferrochrome and other commodities and there is a risk that tons of fruit and other perishables stacking up will rot if the strike is protracted. Kumba Iron Ore Ltd. (KIO.JO) and two of the country's ferrochrome producers have declared force majeure with their customers.

Transnet earlier in the week said a train transporting fuel derailed near Durban, allegedly after a section of track was sabotaged. The company has also reported incidents of violence and intimidation by picketing workers, while the unions have countered Transnet has been using unqualified train drivers and tug pilots.

-By Robb M. Stewart, Dow Jones Newswires; [phone]; [e-mail]