Bloomberg reports that labour federation Cosatu said it wanted the R104 billion of Eskom’s debt held by the state pension fund manager to be converted into equity owned by workers.
The proposal, made in an opinion piece in Business Day by Cosatu’s general secretary Bheki Ntshalintshali, is part of a deal the labour federation is trying to reach with business and government to rescue the power utility. “This will result in workers becoming shareholders in the power utility,” Ntshalintshali said, without giving further details. Eskom can’t supply sufficient power to the country and has R454 billion in debt. Ntshalintshali also recommended that at least 10% of all pension funds, whether private or government owned, be invested in government bonds geared toward social investment and employment creation. “Workers believe that their retirement funds can contribute toward economic growth, socially desirable investments and employment creation,” he stated. But, the raising of the possibility of so-called prescribed assets is likely to trouble investors, who are opposed to having their investments dictated by government.
- Read the original of the above report by Antony Sguazzin at Moneyweb
- Read too, Ntshalintshali sheds some light on Cosatu’s novel plans to save Eskom, at BusinessLive
Get other news reports at the SA Labour News home page