By Lehlohonolo Lehana.
Labour unions have rejected a 3.75% pay rise offer from the embattled power utility Eskom as it is below the rate of inflation, union representatives said.
The group said Numsa revised its demand down from 15% to 12%, NUM from 15% to 11% and Solidarity is still holding at 7.1% inflation plus three percentage points.
The power utility has been locked in talks with unions at the Centralised Bargaining Forum since Tuesday.
Eskom had presented a proposal for a uniform 4.5% salary hike, which marks a departure from their original offer of a 3.75% raise.
During ongoing negotiations, Numsa said Eskom has the money to properly compensate its workers, arguing that the recent 18.5% tariff hike granted by the National Regulator of South Africa (Nersa) could be one of the avenues through which the utility can do so.
Phakamile Hlubi-Majola, a spokesperson for Numsa, says Eskom had not engaged fully with the other demands on top of the salary increase.
Hlubi-Majola noted that the union does not want any of the power stations to be closed. However, Eskom must also address the worker’s demands for increased medical aid contributions and extended maternity leave.
“What they (Eskom) has basically proposed is a 0.5% increase, and this is not based on CPI; Eskom is not taking into account the impact of the cost of living on normal workers.”
Our members have been denied proper increases while their benefits and conditions have also been slashed, Eskom has also only 8% of its operational costs on its workers, and Eskom has the money to meet the union’s demands, said Hlubi-Majola.
Eskom’s current debt stands at R423 billion, and government has committed to provide the parastatal with debt relief of R254 billion over three years.
The negotiations come at a time when the power utility is trying to avert the unprecedented stage 8 load shedding during the winter season.