(Bloomberg) -- South Africa’s state-owned port and rail logistics company and labor unions met on Wednesday in the latest effort to end a strike over wages that’s progressively slowing the flow of goods in and out of the nation.

The industrial action at Transnet SOC Ltd. that started Oct. 6 has severely reduced staff at key ports that export iron ore and coal from South African mines. Shipments of agricultural goods are also at risk, with fruit farmers raising concerns about the limited shelf life of their products. 

The government said it was “extremely concerned” about the negative impact the strike was having on the economy and called for a speedy resolution to the impasse. 

“Our country cannot afford further job losses in other sectors of the economy and the interruption of imports and exports,” it said in a statement on Wednesday. It urged Transnet and the unions “to adopt an approach which balances the rights of workers, who are affected by rising prices, against the long-term stability and growth of Transnet and the economy as a whole.”

Read more: Europe’s Coal Price Jumps as South Africa Strike Curbs Supply

The outcome of the latest talks between Transnet and its two biggest labor groups, the United National Transport Union and South African Transport and Allied Workers Union, wasn’t apparent by late Wednesday. The company earlier said it was hopeful the unions would formally table their position so its feasibility could be assessed.

Transnet’s latest proposal for pay raises of up to 5% and a boost to housing and medical allowances of 1% was rejected by Untu, the union said in a letter to its members. The labor group advised the company that it would consider an increase above 8%, a position that resulted in a deadlock, Carestone Damons, a member of Untu’s bargaining team, said in a mobile-phone message.

Coal and iron ore miners have warned that a prolonged strike will curtail exports and hobble production. Russia’s invasion of Ukraine has boosted demand for the dirtiest fossil fuel and revitalized a shipping route to Europe. South Africa is also the world’s second-largest exporter of citrus fruit, trailing only Spain.

“Operations, especially at the container terminals, are limited,” said Mireille Wenger, the finance and economic opportunities minister in the Western Cape province said in a statement. Waterborne shipments accounted for 90% of primary agricultural product exports from the province, with most exiting through the Cape Town port.

Businesses have offered to pay increased fees for Transnet rail services along with a strike-avoidance levy until an agreement is reached, according to Johannesburg-based Business Day. The newspaper cited proposals contained in an industry publication, Cargo Movement Report.

(Updates with government comment starting in third paragraph)

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