Today's Labour News

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eskomBloomberg reports that Eskom is reviewing its business, including staff numbers and possible asset sales, to find a way out of massive debt and develop a more sustainable model.  

The state-owned power utility will hold a strategic session next week as part of an effort to address flaws that forced it to take a R5 billion rand loan for the month of February to maintain essential liquidity levels.  Jabu Mabuza, Eskom’s new chairman, said on Wednesday at a Bloomberg conference:  “Our cost structure is definitely not right.  We have to have to help the organization to be structured with people, assets, funding in a manner that is appropriate.”  The business needed to address “unacceptable” debt-to-equity ratios, which were above 70% compared to the benchmark of around 50%, Mabuza indicated.  “Whether it is human or office, everything needs to be looked at” in terms of cost, Mabuza stated.  He declined to give a target for how much the utility should reduce its current number of almost 42,000 employees, but said that would also be reviewed.  “Benchmarked against our peers globally, Eskom is definitely employing too many people,” Mabuza claimed.

  • Read this report by Amogelang Mbatha and Paul Burkhardt in full at Moneyweb

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