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South Africa striking union mulling new offer

Signs of progress in the showdown between the South African Transport and Allied Workers Union (Satawu) and logistics group Transnet came a day after a court order barred another industrial action by electricity workers.

The transport strike has dented exports of metals, cars, fruit and wine to Europe and Asia, as well as imports of vehicle parts and fuel.

"Satawu national leadership is optimistic that the new offer will be given the green light by the Transnet membership. If the members approve the offer, it is likely that agreement will be signed tomorrow afternoon and workers will return to work on Friday," it said in a statement.

Transnet described the offer, which includes a once-off payment to all bargaining sector employees, as a "breakthrough" which could end the strike.

Satawu, which represents 39 percent of Transnet's 54,000 workers, has called for sympathy stoppages at other transport firms countrywide, including at the national airline and the coal export terminal, which could start next Tuesday if the dispute with Transnet is not resolved.

Late on Tuesday, South Africa's biggest union called off a strike at power utility Eskom due to start on Wednesday after the state-owned firm obtained a last-minute court order declaring the planned industrial action illegal.

"There is activity at the ports, but they are operating below their full capacity. Automotive plants are all operating again but limping along, a lot of money has been spent on air freighting parts," said David Powels, president of the National Association of Automobile Manufacturers of South Africa.

Fred Jacobs, director for corporate relations at Maersk Line, said the firm faced "significant extraordinary costs".

Transnet said that with 65 percent of its workers back at work after the company's bigger union accepted a previous wage offer, the logistics group had managed to move a backlog of crucial shipments, including World Cup cargo.

The South African Chamber of Commerce and Industry (SACCI) said the strike could have long-lasting consequences for the country's exports as it may lose its competitive edge.