Eskom workers walk at the Lethabo Power Station near Sasolburg, South Africa, on March 23, 2023. (Photo by Ihsaan HAFFEJEE / AFP)
Unions reject Eskom’s low offer in first round of wage negotiations
NUM, NUMSA and Solidarity have rejected Eskom’s initial wage offer because it is below the current inflation rate.
Eskom workers walk at the Lethabo Power Station near Sasolburg, South Africa, on March 23, 2023. (Photo by Ihsaan HAFFEJEE / AFP)
Wage negotiations between Eskom and its major unions – NUM, NUMSA and Solidarity – kicked off this week. On Friday, the unions rejected the power utility’s first-round offer.
Eskom’s offer of 3.75% wage increase deemed insufficient
The unions submitted their wage demands to Eskom. The first round of negotiations began on Wednesday, 19 April, and ended on Friday.
Eskom offered a 3.75% wage increase, which the unions have rejected, as it is below the current inflation rate of 7.1%.
The unions also called for a multi-year wage agreement of two years to stabilise the ailing power utility. Eskom refused to agree to this, citing its dire financial situation.
The unions have rejected Eskom’s claims and accused the company of failing to reduce the costs of Independent Power Producers, Coal costs, and Diesel Open Cycle Gas Turbines costs, which have been skyrocketing annually, sometimes at 15% or more.
“They do not have a problem with paying these service providers exorbitantly every year, but workers of the Bargaining Unit, whose benefits and packages as reflected in the annual financial reports have remained the same since 2016/17, are told to accept peanuts,” read a joint statement.
Unions demand end to media blaming them for load shedding and call for removal of Eskom negotiator
The unions have also called for an end to the alleged media narrative that blames them for causing load shedding in the country.
“This narrative is reckless and irresponsible, meant to influence the public to hate unions, and workers at Eskom in particular. All our members are at work and they are working extremely hard to keep the lights on.”
The unions have condemned the actions of Thulane Ngele, the General Manager of People Relations at Eskom, for his provocative utterances. Ngele is quoted as saying, “They can do whatever they want because we defeated them at the labour court.”
The unions have called for his removal from the negotiating team, citing his toxic nature and lack of people skills. They said Ngele was the reason workers embarked on protests last year that worsened the load shedding crisis.
The next round of wage talks is set to begin on 8 May.
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