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Sowetan reports that according to energy experts, cash-strapped Eskom might have to shed jobs to afford the 7.5% salary increase offer it has tabled to its three unions, which were due on Tuesday to give feedback on the latest offer.
Energy expert Chris Yelland said the power utility was already having difficulties borrowing money because its debt levels and cost of debt were very high and there were no other options of raising money to cover the additional costs. He observed that job cuts were not something Eskom wanted to speak about in the middle of sensitive wage negotiations, but it had already said that it was significantly overstaffed and somehow it had to bring its cost items under control. Another expert, Ted Blom, said: “I don’t think Eskom has any option ... ultimately it has to do something about its productivity, which is one of the worst in the world.” The salary increase offer will shoot up Eskom’s annual remuneration bill by more than R1.3-billion, Blom indicated. Eskom spokesman Khulu Phasiwe did not completely rule out job cuts, but said they were not being considered at the moment. He commented that Blom and Yelland were “100% correct” to say Eskom did not have money to fund salary increases, but went on to say: “So far, and so far is a key word on this one, the issue of job cuts is not on the table.”
- Read more of this Sowetan report by Isaac Mahlangu at SA Labour News
Get other news reports at the SA Labour News home page