Mining Weekly report that the board at state-owned power utility Eskom has approved a process that could result in the retrenchment of senior executives, the company confirmed on Wednesday.
Eskom said in a statement that, despite efforts to curb expenditure, operating costs had continued to increase dramatically, while output had remained largely unchanged. “As a result, Eskom’s board of directors has decided to review the company’s organisational design to enhance operational and cost efficiencies. As such, Eskom’s board has approved a Section 189 process (i.e. retrenchment process) for its executive structure [F-Bands].” Eskom did not immediately indicate how many employees could be affected by the process, nor did it indicate what level of cost savings were being targeted. The notice comes amid renewed fears of load-shedding, following a rise in unplanned outages, which has forced the utility to rely more heavily in recent weeks on its expensive open-cycle gas turbines.
- Read the full original of this report at Mining Weekly
- Read Eskom’s short press release at Eskom News
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