Johannesburg - Transnet’s controversial new state-of-the-art R23.4 billion multi-products pipeline project has hit another snag, with 450 of Group Five’s civil engineering employees working on Terminal One at Durban harbour going on strike.
The pipeline project has been marred by controversy because of repeated delays and cost escalations. Its initial cost was estimated at R11.1bn in 2008, but this had escalated to R15.4bn by 2009 and R23.4bn by July last year.
Group Five, the listed construction and engineering group, confirmed yesterday that 450 civil engineering employees employed by Group Five Construction for the Terminal One contract and represented by the National Union of Mineworkers (NUM) went on strike on Tuesday last week.
However, the NUM claimed the workers began their industrial action last Monday.
The company said the strike was protected in terms of the Labour Relations Act and had resulted from an unresolved dispute between NUM and Group Five regarding a demand for payment of a project bonus and other items not regulated by the centrally negotiated collective agreement.
It said the strike affected 450 of Group Five’s 1 050 hourly paid employees on site.
Bhekani Ngcobo, the NUM KwaZulu-Natal regional co-ordinator, said the union was demanding that all its members must be paid a R10 000 project bonus, knock off work at 2pm on Saturdays and be represented by a full-time shop steward at Group Five.
“Our members are going to fight hard on the payment of the project bonus and we believe Group Five can afford it. Our members are determined to strike at Group Five simply to deal with [the] company’s arrogance,” he said.
Group Five said the company and Transnet recognised the right of employees to engage in a protected strike and to picket peacefully.
It said measures had been taken to protect the safety of employees who wished not to join in the action or who were not involved in it, and suppliers and contractors not participating in the strike.
Measures had also been taken to protect property.
“We are seeking ways to address the dispute without compromising key principles. We are working with the union, local authorities and the client to broker a solution without compromising the safety of our employees.
“The impact of the industrial action on operations and the construction of the project are being assessed continuously,” Group Five added.