South African unions reject Eskom’s wage increase offer
After three days of negotiations at the National Bargaining Forum, unions have rejected Eskom’s 3.5% wage increase offer. The unions, including the National Union of Mineworkers (NUM), National Union of Metalworkers of South Africa (NUMSA), and Solidarity, argue that a substantial wage increase is necessary to acknowledge workers' efforts and cost-of-living pressures, and are seeking a 15% raise.
Locals walk past electricity pylons in Soweto, South Africa, 3 July 2022. Image: Reuters/Siphiwe Sibeko
“Eskom tabled the offer, and now the trade unions will have to motivate for their demands, and we will take it from there,” said Eskom spokesperson Daphne Mokwena.
“From our side, we commit to being transparent and to being fair to the process to ensure that it is sustainable, and we will ensure that the interests of the employees are safeguarded,” added Mokwena.
However, NUMSA believes that an offer of 3.5% is not good enough.
Phakamile Hlubi-Majola, the national spokesperson for NUMSA, told SABC News that the 3.5% is not reflective of the contribution employees have made to help achieve its current “positive performance.”
“Eskom was able to announce R16bn in profit…500 days without loadshedding, an energy availability factor of over 90%, and for them to come to these talks and offer a paltry 3.5% is frankly not good enough,” said Hlubi-Majola.
WATCH | NUMSA has turned down Eskom's 3.5% wage increase offer, instead pushing for a 15% across-the-board increase. pic.twitter.com/FiIPLjNeco
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In addition to a 15% wage increase, NUMSA is also asking for a R7,000 housing allowance and an 80% medical aid contribution.
The union said it is also asking for a one-year agreement, adding that if Eskom wants a multi-year contract, it would have “put something better on the table” than 3.5%.
Moreover, Hlubi-Majola says Eskom’s offer is especially confounding as the National Energy Regulator of South Africa (Nersa) projected a 7% allocation to wage increases.
The union is urging Eskom to engage meaningfully while keeping workers’ contribution to its turnaround in mind.