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Eskom reaches ‘in principle’ wage deal with unions

The offer was accepted by the Solidarity union last week while the two larger unions, Num and Numsa said they would consider it.

Power utility Eskom and trade unions reached an “in principle” wage deal, the company said late on Wednesday, potentially ending weeks of tense negotiations that have lead to power outages in Africa’s most industrialised economy.

Last week Eskom offered the three main unions a salary increase of 7.5% this year and 7% next year and in 2020, plus an inflation-linked increase in housing allowances and a one-off cash payment of R5 000.

The offer was accepted by the Solidarity union last week while the two larger unions, National Union of Mineworkers (Num) and National Union of Metalworkers of South Africa (Numsa) said they would consider it.

“Wage talks between Eskom and trade unions, primarily Num and Numsa, ended without a signed agreement although the unions have in principle accepted Eskom’s offer,” said Eskom spokesperson Khulu Phasiwe.

In a statement released late on Wednesday the power firm said the two unions wanted members who participated in an illegal strike to not face disciplinary action, a condition Eskom rejected.

Eskom did however agree to a request by the unions for a meeting with minister of state firms Pravin Gordhan and the firm’s board.

The cash-strapped power utility, which generates more than 90% of the country’s power, is desperate to end the work stoppages and push ahead with a turnaround plan that is centrepiece of President Cyril Ramaphosa’s pledge to reform the economy. 

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Without a deregulated power framework, Eskom has a gun to SA’s head. They could literally just demand any salary increase and SA will have no choice, and sooner or later they will realize that. We place our whole country at the mercy of one institution. Not very intelligent. We need independent competition urgently.

@ talker i couldn’t have agreed with you that SA needs an independent energy competition as this will escalate further for years to come.

This a double edge sword for tax payers.
1) the increase means electricy will cost more
2) tax payers will bail out the business again .

People should just generate their own power, it’s cheaper than Eskom.

So “in principle” the “hostage takers”, “saboteur’s” and “intimidators” got it their way, while the main culprits Num and Numsa, did not sign any agreement, seems its not the end. Lets see if those who participated in the illegal strike will face any disciplinary action.

“a turnaround plan that is centrepiece of President Cyril Ramaphosa’s pledge to reform the economy”LOL…and with stats release by Corruption watch, CR “reform” is well and truly reformed under the centrepiece of “cadre corruption economy”, and escalating.

Eskom is giving an inventive for striking worker, everyone is getting a bonus of R5000.

Imagine telling your boss give me an increase, he says no then you strike so then he bribes you to come back work.

This has unintentional consequences for S.A. Labour market, because Eskom employes 50 000 workers, other sectors make similar demands.

That is why the Down Grade has to happen so that the man in street is punished for not holding his government accountable .

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