Unions to consult members on Eskom’s offer of a 6.2% pay increase

Eskom trade unions said on Thursday they would consult their members to get a mandate on whether to accept or reject the company’s renewed wage increase offer of 6.2% for 2018.

One of the unions, Solidarity, said it would advise its members to accept the offer, which also promises 6% in 2019 and 6% the following year.

The unions said Eskom presented the proposal as a “take it or leave it” offer during negotiations on Thursday.

The National Union of Mineworkers, the National Union of Metalworkers of SA and Solidarity closed ranks last week, tabling demands of 9% for 2018 and 8.5% and 8.6% for the two successive years.

However, it now seems the unions are leaving it up to their members to decide, after the power utility moved from its 0% position of four weeks ago.

Solidarity’s Deon Reyneke told Business Day they thought the offer was favourable given its distressed financial position.

“We will advise our members that this is a good offer, taking into consideration the financial position of Eskom. We will advise them that this is a good offer as long as we can save jobs. That will give Eskom an opportunity to sort out their financial problems and have stability.”

The NUM said it “noted” the offer and would report back to the negotiations plenary when it reconvenes next Friday.

The union said Eskom had threatened to revert to the 4.7% wage increase offer it proposed last week if unions did not accept the 6.2%.

The NUM took exception to the ultimatum, saying Eskom was negotiating in bad faith. “Eskom suspended their ability to be reasonable. They do not care about the welfare of our members,” it said.

Numsa confirmed it would take the new offer to its members, although it has objected to Eskom’s non-response to its demand over the scrapping of the independent power producers (IPP) programme.

“It is shocking that Eskom has not dealt decisively with the demand from unions to cancel the IPP project because of the dire cost implications…. Eskom management admitted that the IPP project was responsible for the financial crisis it is in, but they want unions to endorse it anyway,” said Numsa general secretary Irvin Jim.

Eskom does not comment on the negotiations process.