Transport workers in South Africa have begun industrial action in a dispute over pay.

Rail strikes by two of South Africa’s largest trade unions – SATAWU (South African Transport and Allied Workers Union) and UTATU (United Transport and Allied Trade Union) – have begun as workers take industrial action in a dispute over pay.

SATAWU and UTATU are demanding a 15% basic wage increase for their members who work for Transnet – South Africa’s largest rail, freight and port operator. The average worker earns around R127,300 (£11,600) a year.

Transnet says a 15% increase is completely unreasonable. In an open letter to the two unions, Group Executive of HR, Pradeep Maharaj, said: “Acceding to your demands of an across the board increase of 15%, which is three times the inflation rate, would not only fuel wage inflation, it will drive up our operating costs as a company and force Transnet to either raise the prices it charges its customers and/or even consider cutting jobs.”

Instead, the company, which withdrew an earlier 13% offer, has now tabled an 11% increase that would be backdated to 1 April 2010 as well as new medical aid dispensation.

Because of the strike, the Passenger Rail Agency of South Africa (PRASA) has suspended all rail operations in order to secure the safety of commuters across the country and has apologised unreservedly for the inconvenience to its passengers.

Last week UTATU warned its members against aggressive action after reports of violent acts of intimidation by some of its members.

Chris de Vos, UTATU General-Secretary, said the focus needs to return to the issue at the heart of the action: “There have been some unfortunate incidents. But the focus should rather be on the 40,000 Transnet workers who are striking legitimately – not the few who are behaving irresponsibly.

“The bottom line of this strike is the waste of money and resources. All South Africans would now be better off had Transnet not opted to underpay its workers by as much as half the going rate.”

South African tourism chiefs will be keen to get the rail workers’ issues sorted promptly ahead of the FIFA World Cup which is being staged in the country in just four weeks’ time. Transport and travel will be heavily under the microscope as millions of international visitors descend on the country.