Wage negotiations between Eskom and the labor unions representing their workforce are not looking good. South Africa's two biggest trade unions have rejected the power utility's improved 6% pay rise offer.
A general view of Kendall Power Station, an Eskom coal-fired station in Mpumalanga. Image credit: Reuters/Siphiwe Sibeko
Eskom has been dragged down by Africa's biggest economy for years due to power outages and the company's financial troubles, but improving performance at its coal-fired power stations has staved off outages and brought in the first annual profit in eight years.
The company began talks with three major unions last year and offered a 5.5% wage increase last month.
It was raised to 6% during the third round of talks last week, but was rejected by National Union of Mineworkers (NUM) members, said union spokesperson Livuvani Mamburu.
NUM had revised the demand down from an initial 15% to 12%, well above South African annual inflation which stood at 3.6% in December.
Mamburu said, “It is not the Eskom management that has perpetrated load-shedding (power cuts), it is the workers; and we think they should be rewarded for their hard work.”
Eskom brings 5.5% increase offer in pay talks
National Union of Metalworkers of South Africa (Namsa) general secretary Irwin Jim said his union also rejected the proposal.
“We do not accept the current proposal on the table,” he said, adding that further talks are scheduled for Thursday.
A third union, Solidarity, declined to comment, citing the sensitive nature of the negotiations.
An Eskom spokesperson did not immediately respond. reuters Question.
Eskom, which reached a three-year wage agreement through 2023 that increased pay for non-managerial staff by 7% each year, is seeking another multi-year wage agreement.