eskomBloomberg reports that according to people familiar with the matter, Eskom Holdings is offering workers a 7% wage increase, after the utility lost units during illegal protests that plunged SA into the worst blackouts since 2019.

The offer is apparently for one year and the 7% raise is on a sliding scale with higher earners receiving slightly less. Eskom said many workers have reported for duty at power stations after the company met with unions over the situation. Eskom is unprofitable with R396-billion of debt that it relies on government bailouts to service. It made an offer of as much as 5.3% before protests broke out and workers blocked roads to power stations. SA’s consumer inflation rose to 6.5% in May, up from 5.9% in the previous month. The utility’s constrained financial situation meant Eskom would “have to find savings somewhere else” in order to make a higher offer, CEO Andre de Ruyter said in a briefing on Tuesday. Trade unions are expected to present the revised offer to members before negotiations resume on Friday. The details of Eskom’s offer will be “made known” then, the company’s spokesperson indicated.

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