Unions livid as Eskom sticks to its 0% offer
• Organised labour says it is prepared to physically remove newly appointed top management
Cash-strapped power utility Eskom is heading for a showdown with unions in the second round of wage talks as it sticks to its stance of no pay increase.
Eskom did not give in on any demands, including on the softer issues of maternity leave and housing.
Wednesday was the first day of the second round of talks, and Eskom has not budged from its opening offer, a move that has set the stage for a showdown with the unions.
On Wednesday, the unions said that they were prepared to “physically remove” the newly appointed top management and embark on an unprotected strike.
Eskom employees are essential-service workers and so cannot strike legally.
President Cyril Ramaphosa ushered in a far-reaching clean-up of Eskom when he appointed Jabu Mabuza as chairman of the Eskom board, even before he became head of state, in one of his first decisive acts as ANC president.
This came as Eskom was on the brink of a default and risked suspension of its bonds on the JSE amid allegations of mismanagement, corruption and state capture.
The board appointed Phakamani Hadebe as acting CEO with a mandate to clean up the power utility and help restore viability. Hadebe has since been confirmed as permanent group CEO at Eskom by Public Enterprises Minister Pravin Gordhan.
Eskom ran out of cash late in 2017 after lenders turned off the taps due to state capture and corruption allegations.
The situation remains dire, even though a turnaround strategy is on the cards. Eskom had to rely on an emergency 30-day loan in February to pay salaries and meet its running costs.
Eskom spokesman Khulu Phasiwe said that it was simple: the power utility’s running costs remained high amid low demand. While the power utility was not broke, it simply could not afford wage increases and bonuses across the board including for senior management, he said. But unions are having none of it. The National Union of Mineworkers — the majority union at Eskom — is demanding a 15% increase.
The union has called for Mabuza and Hadebe to vacate
their posts, warning that workers were prepared to “physically remove them” if they did not go.
The NUM said it felt that Eskom was “setting the stage” for privatisation.
Paris Mashego, the NUM’s energy-sector co-ordinator, said that the union was interpreting the company’s stance as a suspension of its recognition agreement.
He said the Eskom management wanted to strip employees of their current conditions of service, which were agreed to in the past.
He said during negotiations Eskom had informed unions that the old recognition agreement was no longer relevant and that the current situation required a new agreement.
The National Union of Metalworkers of SA said the union, which is the second largest at Eskom, also rejected the offer.
Numsa general secretary Irvin Jim said Numsa was “dismayed” by Eskom’s stance on the wage negotiations.
“We reject the offer especially the stupid decision by the minister [of energy, Jeff Radebe], and the Eskom board to sign on 27 independent power producers and then turn around and plead poverty to workers,” he said.
Phasiwe said that while the agreement with the independent power producers had been signed, there had not been an exchange of money and that it had no bearing on Eskom’s finances as these would only become operational only in the next five years.
The NUM has rejected the deal with independent power producers and in April threatened to withdraw its electoral support for the ANC if the government signed the agreements. The NUM is a Cosatu affiliate, which is part of the political alliance with the ANC.
PLAYING GAMES
Solidarity deputy general secretary Deon Reyneke said that Eskom was simply playing games by frustrating trade unions with a 0% offer, hoping unions or their members will do “something irresponsible” to give the company the “moral high ground”.
Solidarity’s opening demand was for a 9.5% increase.
Talks are set to continue on Thursday and Friday.
THE NATIONAL UNION OF METALWORKERS OF SA SAID IT FELT THAT ESKOM WAS SETTING THE STAGE FOR PRIVATISATION