South Africa’s state-owned ports and freight rail company’s biggest union threatened strike action after wage talks collapsed, a move that may curb shipments of minerals and agricultural goods.

“The United National Transport Union and Transnet have officially reached a deadlock in the 2025-26 salary and wage negotiations following a failed conciliation process by the Commission for Conciliation, Mediation and Arbitration,” the union said in an April 14 statement.

UNTU, which represents more than half of the 46,000 employees at the company, said it rejected Transnet’s unchanged offer for a wage increase of 6% annually in the first two years starting April 1, and 5.5% in the third year. The union wants a 10% increase. 

“Transnet remains optimistic about concluding this process while it continues the business of turning the company around for the benefit of the company and the South African economy,” it said in a statement.

A strike would be a blow to South Africa’s moribund economy, at a time when U.S. President Donald Trump’s universal tariffs are threatening to upend global trade.

A previous strike in 2022 was estimated by the Minerals Council South Africa to have cost mining companies about 815 million rand ($43 million) a day. 

The fraying utilities’ rail and ports facilities are key to South African exports of bulk commodities such as coal and iron ore as well as agriculture products including citrus.

The CCMA commissioner will issue a certificate of non-resolution, legally enabling UNTU to commence with industrial action, the union said.

“The time has come to mobilize. The time has come to negotiate on the streets,” UNTU said.