BL Premium reports that in a move hailed for heralding labour stability for Eskom’s operations, the state-owned power utility and three unions have signed a pay agreement that will see all nonmanagerial staff get increases of 7% a year for three years.
The deal hammered out at the central bargaining forum (CBF) is effective from 1 July 2023 to 30 June 2026 and was signed by Eskom management and the National Union of Metalworkers of SA (Numsa), the National Union of Mineworkers (NUM), and Solidarity. It includes a 7% annual rise in the housing allowance for the duration of the agreement. The lowest-paid employees that are party to the CBF are to receive a once-off taxable payment of R10,000 for the first two years. NUM and Numsa, the two largest unions representing the majority of Eskom’s estimated workforce of 42,000, initially demanded raises of 15%, which they reduced to 11% and 12%, respectively. Solidarity members demanded 3% more than the average inflation rate. The cash-strapped power utility started with an initial offer of 3.75%, which it adjusted to 4.5%, and then 5.25%, but unions rejected these offers. The parties finally settled on 7% on Thursday. Eskom acting group CEO Calib Cassim commented on the deal: “The collective agreement will go a long way in stabilising our organisation by providing Eskom with sufficient space and time to collaboratively work together to urgently address our most pressing challenges. This is the first time in more than a decade that the parties have reached agreement in the [negotiating] room.” Eskom staff are essential service workers, meaning they cannot legally go on strike.
- Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only)
- See too, Eskom workers get 7% pay rise, at Moneyweb
Get other news reports at the SA Labour News home page