Eskom, saddled with about R392bn in debt, has offered unions wage increases of 4%-5.3% — in line with the Reserve Bank’s inflation target range of 3%-6% — for its nearly 30,000 employees in the bargaining unit.
In a document seen by Business Day on Monday, Eskom is offering a one-year pay hike deal for increases of 5.3%, 4.5% and 4% for its 28,374 employees in the bargaining unit, a platform where the employer and unions discuss and agree on wages and other conditions of employment. Employees in the bargaining unit are spread across different salary scales.
“This offer is in full and final settlement of all the demands tabled by the trade unions in terms of the 2022/2023 CBF [central bargaining forum],” Eskom said in the document.
The offer was made to the National Union of Metalworkers of SA (Numsa), National Union of Mineworkers (NUM) and Solidarity, during another round of talks for the 2022/2023 financial year at the bargaining forum last week.
Eskom, described by ratings agencies as the single biggest risk to the SA economy, is among state-owned enterprises (SOEs) that have been hollowed out by years of mismanagement and corruption linked to state capture. It has been struggling to keep the lights on due to regular breakdowns at its coal-fired power stations. The parastatal has also been dogged by sabotage of equipment in recent months, adding to power outages.
Numsa and NUM, which represent most of Eskom’s estimated 46,000 workers, had been demanding a one-year, 15% across-the-board wage hike, while Solidarity is demanding a 5.5% across the board increase, its sector co-ordinator Tommy Wedderspoon said.
Numsa spokesperson Phakamile Hlubi-Majola said on Monday: “We have reduced our demand from 15% across the board down to 12% across the board. Our revised salary demand from 15% to 12% is a R425m reduction from our opening demand.” That demand is still above the headline inflation rate of 5.9% the Reserve Bank forecasts for 2022.
Numsa said the rising cost of living was making life difficult for Eskom employees. “We demand an above-inflation increase for the simple reason that basic foodstuffs and daily expenses have gone up way beyond inflation in some cases. Food inflation has gone up by 6.3%, transportation has increased by 14.7% and public transport has gone up 12.6%. All these costs are making life expensive for ordinary workers and their families.
“Numsa submits that it is unreasonable and unfair to deny employees a reasonable increase given the deliberate failures of management to manage money efficiently.”
She said it is unfair for the utility to offer wage increases way below inflation while [Eskom CEO André] de Ruyter is giving suppliers “generous increases” at the expense of the group. It is immoral and unreasonable for De Ruyter to refuse to give workers a meaningful wage increase.”
Hlubi-Majola said after parties could not find each other during talks last week, Eskom attempted to collapse the negotiations by declaring a dispute. We stopped them. We asked for another round of talks from June 21-22.”
NUM chief negotiator Helen Diatile and Eskom did not respond immediately to requests for comment.
While Numsa and NUM demanded a 15% pay hike and 9% for Solidarity in 2021, Eskom unilaterally implemented a 1.5% wage increase, saying it could not afford the unions’ demands.
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