Unions reject Eskom's new, improved wage offer

24th May 2023 By: News24Wire

 Unions reject Eskom's new, improved wage offer

Photo by: Bloomberg

Three unions at Eskom have rejected the embattled power utility's latest 4.5% wage increase offer.

Eskom tabled its revised offer, which is a hike from an initial 3.75%, to the National Union of Metalworkers of SA (Numsa), the National Union of Mineworkers (NUM) and Solidarity at the Centralised Bargaining Forum (CBF) on Tuesday.

Eskom said Numsa revised its demand down from 15% to 12%, NUM from 15% to 11% and Solidarity is still holding at 7.1% inflation plus three percentage points.

"Negotiations are still continuing for the next two days inclusive of today," Eskom spokesperson Daphne Mokwena told News24. 

In 2022, a violent, unprotected strike dealt a heavy blow to Eskom's already fragile capacity to generate electricity, leading to Stage 6 loadshedding. The State-owned power utility ultimately reached a 7% wage increase agreement with unions.

Solidarity deputy secretary general Helgard Cronje told News24 on Wednesday that despite the unions rejecting Eskom's latest offer, it was "not all doom and gloom."

"All parties indicated that they remain committed to the current process and their main aim still remains to reach an agreement during this negotiation process. The fact that Eskom actually moved, to us is a positive sign."

He said that while Solidarity did not change its wage demand, it did adjust most of its other demands.

"On our demands, the only outstanding matters are our demand for a 5% increase (in the) housing allowance and the percentage increase. All parties moved in one way or another during yesterday's session which is very positive."

Numsa's other demands included that there be "no closure of power stations", that Eskom's contribution to medical aid must shift to 80% with a 20% contribution by employees, and a R1 100 increase in housing allowance, among others.

"Eskom is not taking into account the impact of the cost of living on ordinary workers of Eskom. Our members at the CBF have been denied proper increases, whilst their benefits and conditions were slashed," Numsa general secretary Irvin Jim said in a statement.

"At the same time, Eskom spends 70% of its operational cost on paying bloated primary energy costs [for coal and diesel] which benefit the private sector only, but it spends only 8% of its operational cost on workers’ salaries in the CBF."