Business Day

Eskom talks to drag on as unions firm on bonuses

• Workers say exceptiona­l performanc­e needs reward

- Theto Mahlakoana Political Writer mahlakoana­t@businessli­ve.co.za

The drawn-out Eskom wage negotiatio­ns will continue this week after trade unions refused to budge on their demand for bonuses. Unions told the Eskom management on Friday that there would be no deal without bonus payments. Last week Eskom chairman Jabu Mabuza said where targets were set by an employer and then met by the employees, bonuses must be paid, “but the opposite must also hold”.

The drawn-out Eskom wage negotiatio­ns are set to continue this week after trade unions refused to budge on their demand for bonuses.

Two months after the talks started, parties are no closer to a wage agreement, with organised labour telling the Eskom management on Friday that there would be no deal without bonus payments.

The struggling power utility that reported major financial losses last week announced two weeks ago that it would not be paying bonuses due to its financial difficulti­es, just as unions seemed amenable to the rest of Eskom’s latest proposed wage increase package.

Its financial results released last week showed that sales fell in 2017, with losses incurred amounting to R2.3bn.

The utility has two wage increase options that workers are yet to respond to due to the difference­s over bonuses.

In Option A, the entity’s management proposed 7% wage increases for three years, with housing allowance hikes dependent on the inflation rate.

Option B is 7.5% in 2018 and 7% in 2019 and 2020 with no housing allowance.

Solidarity has already said the offer was good and would be recommende­d to members.

On Sunday, the National Union of Mineworker­s (NUM) explained that Eskom’s employees had “performed exceptiona­lly well” and that they therefore deserved to be paid bonuses.

Workers are demanding 12% of their annual income as a oneoff bonus. NUM spokesman Livhuwani Mammburu said the issue remained a “deal breaker” and there would be no deal without it.

“As the NUM, we demand that Eskom pay the hardworkin­g workers, who averted load shedding, their bonuses. As it is reflected in the performanc­e score sheet that workers performed exceptiona­lly well,” Mammburu said.

The union said the company’s performanc­e scorecard indicated that workers had met their targets and it was in line with their contractua­l agreements with Eskom that they should be paid bonuses as a result.

“A formal performanc­e contract cannot be changed unilateral­ly. The NUM will not take this manipulati­on lightly. The NUM is going to fight tooth and nail until our members get the well-deserved bonuses,” he said. Last week, Eskom chairman Jabu Mabuza said that where targets are set by an employer and then met by the employees, bonuses must be paid, “but the opposite must also hold”, he said.

 ??  ?? Jabu Mabuza
Jabu Mabuza
 ?? /Freddy Mavunda ?? In a bad way: Eskom chairman Jabu Mabuza and CEO Phakamani Hadebe at the results presentati­on at the power utility’s MegaWatt Park offices in Sunninghil­l earlier this year. Eskom reported major financial losses in July.
/Freddy Mavunda In a bad way: Eskom chairman Jabu Mabuza and CEO Phakamani Hadebe at the results presentati­on at the power utility’s MegaWatt Park offices in Sunninghil­l earlier this year. Eskom reported major financial losses in July.

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