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Eskom Strikes 7% Wage Deal Amid Union Dispute
17 Apr
Summary
- Eskom finalized a three-year wage deal increasing salaries by 7% annually.
- Two major unions signed, but one refused, yet the deal is binding.
- This wage hike exceeds current inflation rates significantly.
South African state-owned power utility Eskom has finalized a three-year wage deal. This agreement, effective from July, will provide employees with a 7% annual salary increase. The annual raise is notably higher than the current 3% inflation rate.
While Eskom reached this agreement, the National Union of Metalworkers of South Africa (NUMSA) has yet to sign. However, the deal is binding as the National Union of Mineworkers and Solidarity collectively represent over 75% of employees in the Central Bargaining Forum. Eskom previously implemented similar 7% annual increases under its last three-year agreement in 2023. NUMSA is seeking an 8% increase in the first year and may pursue arbitration, potentially accompanied by demonstrations.
Eskom, the former state monopoly, continues to supply the majority of South Africa's electricity. Despite past challenges with power cuts and financial losses that necessitated government bailouts, the utility has recently shown a strong performance turnaround. Its coal-fired power stations have improved, allowing Eskom to cease nationwide blackouts and report its first full-year profit in eight years during the last financial year.
