Today's Labour News

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ramaphosa2BL Premium reports that despite being overstaffed with as many as 27,500 employees, the government does not want retrenchments to be imposed on Eskom as part of the efforts to turn the bankrupt power utility around.  

Speaking in parliament on Thursday, President Cyril Ramaphosa said references to cost cutting "should be understood not to mean retrenchments.  The preferred strategy in reducing human resources costs will be to offer voluntary packages to staff."  A 2016 World Bank study found that Eskom needed a workforce of 14,244.  Other sources also indicated that the utility was overstaffed.  After his announcement last week that Eskom would be split into three separate units — generation, transmission and distribution — was met with fierce opposition from labour unions and political parties, including the ANC, Ramaphosa assured stakeholders that there would be engagement on plans for Eskom.  "We accept, as government, that we have not done enough to bring some of the key stakeholders, such as labour, on board and are determined to correct this.  As government, we understand the fears of workers about job losses at Eskom and in associated industries,” the president told MPs.

  • Read the original of Bekezela Phakathi’s report on this story in full at BusinessLive (paywall access only)


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