Jun 22, 2010
Union rejects Eskom's latest wage offerBack
© Reuse this
The utility had tabled a new offer during a meeting with unions at the Commission for Conciliation, Mediation and Arbitration (CCMA) on Monday evening.
The utility's new offer comprises three elements including; an 8% across-the-board increase on basic salary up from an original 5,5% offer, a 5,6% increase to key allowances, and a R12 000 one-off ex-gratia payment for each employee, which would be paid in two equal instalments in July 2010 and July 2011.
Eskom'human resources head Bhabhalazi Bulunga said that the ex-gratia payment was designed to facilitate the transition to a total cost to company pay structure, which would include a housing benefit and the introduction of a defined contribution pension scheme as an option for existing employees.
"This is a very reasonable offer for our over 30 000 employees in the bargaining unit," said Bulunga.
However, NUM spokesperson Lesiba Seshoka said that the workers were demanding a 9% across-the-board wage increase, and a minimum a R4 000 a month for housing allowances.
Seshoka did note that the unions were still prepared to negotiate with the utility, and hoped that they would bring a "solution" to the table. "The unions have recommitted to the negotiations and we do not want Eskom to take us for granted and to come forward with a decent offer."
Meanwhile, Bulunga pointed out that the 8% wage increase is well above South Africa's inflation rate, which is currently below 5%.
"That is very generous in today's economic climate, and it comes on top of the other benefits our workers already enjoy. The Eskom minimum basic salary, at R76 770 a year, is well above average. Independent surveys have shown that all of our bargaining unit employees earn above-average salaries. Our leave and other benefits, including family responsibility leave and maternity benefits, compare very favourably with the market average.
"Our salary packages already include a number of allowances and subsidies. In addition to these benefits, every Eskom employee in the bargaining unit receives a 13th cheque every November and will also share in a R1-billion bonus pool in July 2010," said Bulunga.
However, Solidarity spokesperson Jaco Kleynhans said that the "big issue" on the table was really the housing allowances requested by workers. He explained that housing was often very expensive in areas located close to the power stations, and that workers were forced to leave Eskom because of insufficient housing arrangements.
Kleynhans said that the unions had been discussing the matter with the utility for the past two years, but noted that to date no real offer has been put on the table.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Updated 2 hours 17 minutes ago French conglomerate Bollore may have to halt work on the Niger to Benin section of its giant West Africa rail project after a rival company won a court order to stop it going ahead. The dispute concerns rival rail schemes in the area.
Updated 2 hours 23 minutes ago A week ahead of the second annual gathering of the Forum on China–Africa Cooperation (Focac), in Johannesburg, the JSE is rolling out the proverbial red carpet for Chinese investors looking to Africa’s largest bourse for possible investment opportunities, calling...
Updated 2 hours 24 minutes ago The South African National Roads Agency Limited (Sanral) applied for leave to appeal on Friday against the Western Cape High Court judgment that set aside the approvals that would enable it to toll sections of the N1 and N2 freeways in Cape Town. This prompted the...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...