Three major unions in South Africa’s energy sector are demanding a 15% wage increase, setting the stage for a potential stand-off with Eskom.
Eskom unions resoundingly reject 3.75% counteroffer
As reported by Jacaranda News, the National Union of Mineworkers (NUM), the National Union of Metalworkers of South Africa (NUMSA), and Solidarity have rejected Eskom’s financial constraints as the reason behind their demands, citing the high cost of coal, diesel, and open-cycle gas tubes.
From what we understand, the power utility counteroffered an across-the-board 3.75% increase.
Unions resoundingly rejected Eskom’s offer and argue that the national electricity supplier has not been shy about paying these high costs, but is unwilling to give workers the same consideration.
The unions are also demanding the signing of a two-year agreement, which the utility has not yet agreed to.
However, Eskom’s finances remain a major concern. The company has been struggling to keep the lights on since 2008 and currently has a mounting debt of approximately R423bn, which is one of the biggest financial burdens faced by any public company in South Africa.
What does this mean for loadshedding?
Eskom has rejected the wage increase demands, citing the high financial constraints it faces, with the company arguing that it cannot afford to meet the unions’ demands without exacerbating its existing debt.
In 2022, Eskom workers went on a week-long strike that had a devastating impact on loadshedding, with the power utility resorting to Stage 6 loadshedding as a mitigating measure to avoid a system collapse.
Up to 90% of Eskom workers were absent from duty during that time, further worsening the situation. It is uncertain what impact the current demands will have on Eskom’s ability to keep the lights on.
On Friday, the power utility confirmed rotational outages would be reduced to a pattern of Stage 3 and 4 loadshedding this weekend, barring no further unplanned breakdowns.
“The team is working around the clock to ensure that generating units are returned to service as soon as possible,” Eskom said.
