Eskom’s hard-won financial gains in its 2025 financial year are at risk of being wiped out by workers’ demands for pay increases well above the official inflation rate. Yet failure to secure a deal could put the state-owned power utility at risk of a strike that could have severe consequences for the economy.
Eskom has just more than 40,000 employees. Its wage bill for 2025 amounted to R43.1bn, with the average cost per employee about R1.03m a year.
The three recognised unions at Eskom, the National Union of Metalworkers of South Africa (Numsa), the National Union of Mineworkers (NUM) and Solidarity, are demanding pay increases of up to 15%, compared with the official inflation rate of 3.6%. Eskom has offered 3.5%.
A 15% increase would see workers’ salaries jump by R12,900 to about R98,900 a month on average, a hike that would severely dent the company’s finances after it reported a profit of R16bn for the year to end-March — the first in eight years.
The turnaround was supported by a R254bn debt relief package from the government, tariff hikes and lower diesel costs thanks to a big decrease in load-shedding.
Still, the power utility has achieved remarkable progress after years of state capture when it was hollowed out and repurposed to serve the narrow interests of the politically connected. That mismanagement resulted in years of load-shedding that cost the economy billions of rand and left consumers in the dark for extended periods.
Eskom’s wage bill has been increasing over the years. The average annual cost per employer has soared from about R38,000 in 1990 to about R913,000 in 2024, including performance bonuses.
The unions’ demands come about four months after colleagues at Transnet concluded an agreement with the cash-strapped ports and rail operator for increases of 6% a year for the next three years.
On Wednesday, Eskom spokesperson Daphne Mokwena said the company had tabled a “3.5% [wage offer] based on average CPI [consumer price index]”.
NUM Eskom chief negotiator Olehile Kgware said the offer was a “mockery” and the union would not even negotiate on it. “They’ve worked very hard to turn Eskom into the profitable company that it is today. The 3.5% offer is nothing, so at this stage we are still firmly on 15%,” Kgware said.
Numsa and NUM are demanding a 15% across-the-board wage increase, while Solidarity is demanding the higher of 10% or CPI plus 4%.
Still, there appeared to be confusion about Eskom’s offer. Solidarity energy sector co-ordinator Deon Jenkins said: “Eskom’s offer yesterday [Tuesday] was not 3.5%. We are unsure what their offer actually was and parties are trying to clarify [that]. Eskom is expected to make a clear and unambiguous offer during today’s [Wednesday’s] session.”
Eskom’s Mokwena could not immediately be reached for further comment on the company’s offer.
According to documents seen by Business Day, NUM and Numsa are demanding a R7,000 housing allowance, a cellphone allowance (R1,500 a month for NUM and R2,000 for Numsa) and a monthly electricity allowance of R1,500 for NUM and R2,000 for Numsa. They are also seeking an 80% contribution from the company for medical aid costs.
DA MP and labour analyst Michael Bagraim said wage talks were likely to take months. “It’s going to be a real nightmare. Eskom can’t afford a strike, and workers can’t afford a strike. The negotiations could drag through February 2026,” he said.
“Eskom is the cornerstone of our economy. A strike will affect service delivery very badly and could take us back to the load-shedding era. That would be a disaster.”
Bagraim expected much “to-ing and fro-ing” between parties before they find each other.
Update: November 26 2025
This story contains additional information and context.
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