Cosatu expects its Eskom plan to be completed within weeks

Reaffirms it won’t agree to any retrenchments at the power utility.
Andre de Ruyter, Eskom CEO. Image: Moneyweb

The Congress of South African Trade Unions expects a plan that it’s proposing to save Eskom Holdings from its debt burden to be ready within weeks, said the labour federation’s parliamentary coordinator.

The labour group, an ally of the ruling African National Congress, has proposed using the state pension fund manager, the Public Investment Corporation, and government-owned development finance institutions to cut the power utility’s debt by R254 billion to R200 billion. The company’s dire finances have led to regular power cuts and stagnant economic growth.

Read: Eskom: Gordhan open to pension bailout

While there was initially some disagreement within Cosatu as some affiliate unions were concerned about the plan consultations have now been held, Matthew Parks, the coordinator, said. The matter was discussed at the Presidential Working Committee, which groups labour business and other stakeholders, on Monday, he said.

“We do appreciate that it’s a very emotional issue” because of state corruption, he said. “You are going to an institution that has been broken by corruption.”

Cosatu and Business Unity South Africa, the main business lobby group, had previously said they’d hoped a pact would be announced in last month’s state-of-the-nation address, but this was moved out to allow for more consulting.

No urgency

Labour officials also pressed the the government over they see as its lack of urgency in selling broadband spectrum needed by telecommunications companies, finalising the public procurement bill and setting a levy on exports of scrap metal, he said.

At a later meeting of the ruling African National Congress’s National Working Committee, South African Airways, the state airline that’s undergoing a bankruptcy process, was discussed, Parks said.

Under some of the scenarios being considered it could shed 6 500 jobs, Parks said. The labour group wants talks to be held with other airlines to absorb some of the jobs.

“We’re adamant that government must honour its job summit agreement commitment not to retrench workers, this includes” SAA, he said in an interview. “We’ve told government they must look at alternatives to retrenchments including redeployments within state owned enterprises, the public sector and service. We won’t agree to retrenching any workers.”

© 2020 Bloomberg L.P.

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How can they redeploy workers to other SOE’s? They are all in trouble. They are all in debt. The public sector perhaps as they do perhaps have vacancies. But do these employees qualify? One don’t want to load public service with the worst employees from Eskom and SAA.

Phase II of capture is now in full swing. The same system that ate all the bailouts are still in place and hungrier than ever.

Three years of pension bailouts and then it’s time for the IMF to step in. Then, Africa happened.

You would have to change the work ethic of any ex SOE employee. Longer hours, less coffee breaks, all day Friday and a lot of Saturday am work, NO KFC!!!! I wonder if it is possible?

Andre looks like he is already taking strain…………

Cloud cuckoo land. Move your pension money if you can

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