Today's Labour News

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psaBusinessLive reports that after strenuous denials regarding an Eskom bail-out by the finance minister last year, the Public Investment Corporation (PIC) and the Government Employees Pension Fund (GEPF) have agreed to extend a R5bn bridging loan to cash-strapped Eskom.  

The loan will fund the company’s operations during this month, including paying salaries and suppliers.  The GEPF, which manages the pensions of public servants, is one of Eskom’s largest bond investors with about R90bn invested with the junk-rated utility.  The Public Servants Association (PSA) said the Eskom "bail-out" was a betrayal by the GEPF and PIC boards, which guaranteed unions they would hold off on any financial assistance to parastatals until corporate governance had improved.  Ivan Fredericks said the union was consulting its attorneys to see if the PIC board could be declared illegal.  The union was also considering whether to continue its threat of litigation against finance minister Malusi Gigaba following his failure to adhere to his own deadline for meeting with public sector unions in January to tackle their concerns.  Cosatu’s Sizwe Pamla indicated that, while the federation had reservations about the state of parastatals, they could not reject the PIC’s intervention as the role of Eskom in the economy was critical.

  • Read this report by Sikonathi Mantshantsha and Theto Mahlakoana in full at BusinessLive
  • Read too, Public Servants Association says PIC betrayed workers with R5bn Eskom loan, at Fin24
  • And also, In a U-turn on state bailouts, Cosatu grudgingly supports Eskom bailout by PIC, at The Citizen

Get other news reports at the SA Labour News home page