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.

eskomBloomberg writes that a plan proposed by Cosatu to get pension funds and state lenders to refinance part of Eskom’s debt faces hurdles that may be impossible to overcome.  

Under the labour federation’s so-called social compact, the power utility’s R454 billion of debt will be cut to R200 billion, with the balance transferred to a specially created entity.  That will be funded by the Public Investment Corporation, which manages civil servants’ pensions, private retirement funds and other investors. While the government and Business Unity SA (Busa) have welcomed Cosatu’s plan, the Democratic Alliance (DA) and trade union Solidarity have threatened court action because they say it will put workers’ savings at risk.  The Public Servants Association (PSA) has also voiced opposition to the proposals. The standoffs could take years to resolve. Cosatu’s range of preconditions will also be legally problematic to meet.  The Government Employees Pension Fund (GEPF) said any funding provided to Eskom has to comply with its investment mandate, provide adequate returns and be repaid, and it will only be able to assess those criteria once the Cosatu plan is finalised. Private investors in Eskom’s bonds are vociferously opposed to any attempt to prescribe to them how to invest their clients’ money. A lengthy legal battle is likely to ensue should the government try and force them to help fund Eskom.

  • Read the full original of the informative report in the above regard by Mike Cohen at Moneyweb

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