Today's Labour News

newsThis news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.

eskomBusinessLive reports that Eskom, which is facing a net loss of R20bn in the current financial year and is burdened by R419bn debt, says it needs multi-year increases well in excess of inflation to return to sustainability.  

Industry and labour bodies on Monday told the National Energy Regulator of SA (Nersa) that granting that wish would harm the economy and accelerate the company's own “death spiral” as paying customers deserted the grid.  Business Unity SA (Busa), the Organisation Undoing Tax Abuse (Outa), AgriSA, the SA Local Government Association, Sibanye-Stillwater and Solidarity were among those that presented at the hearings.  Outa also opposed last-minute changes by Eskom to its tariff application, from 15% annually for the next three years to 17.1%, 15.4% and 15.5%, respectively.  Busa’s Martin Kingston called on Nersa to suspend the tariff application review process and approve inflation-linked tariff increases until the electricity supply industry had been restructured.  Sibanye-Stillwater’s Jevon Martin called for five years of CPI-linked increases while Eskom implemented its turnaround strategy.  AgriSA’s Requier Wait warned that the drought-stricken agricultural sector would be hard hit by higher electricity tariffs.  Solidarity’s Marius Croucamp warned of the negative effects that a significant hike in electricity tariffs would have on the local steel industry, which he said was operating on a marginal basis and was cost sensitive.  Plants had closed and jobs been lost.  The industry could not survive on local demand alone but had to rely on the very competitive export market.  Profit margins were very low.

  • Read Linda Ensor’s report in the above regard in full at BusinessLive

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