Solidarity accepts 7.5% wage deal with Eskom

Solidarity trade union said on Thursday it had accepted the latest three-year wage offer from struggling state-run power firm Eskom, but the other two bigger unions demanding pay hikes were yet to respond.

Eskom is on a cost-cutting drive as it tries to emerge from a financial crisis and has been grappling with labour unrest for weeks after it initially refused to raise salaries.

It caved in to union demands for higher pay after protesting workers forced some of its generating units to be switched off, leading to power outages in the continent’s most industrialised economy.

Solidarity accepted a salary increase of 7.5% this year and 7% next year and the year after, plus an inflation-linked increase in housing allowances and a oneoff cash payment of R5,000, the union, which represents mostly white skilled workers, said in a statement.

UNRELIABLE POWER

“For all our members across SA the right thing to do now would be to help prevent the economy from being hampered by an unreliable power supply,” Solidarity’s Dirk Hermann said.

The National Union of Mineworkers and National Union of Metalworkers of SA, the two larger unions at the power utility, were still discussing Eskom’s latest offer with their members.

The threat of protests and outages had receded after Eskom offered to raise salaries, but the unions want bonuses to be paid before they agree to a wage deal.

Eskom’s negotiators met union leaders on Thursday and said it hoped to find a solution to the wage impasse.

Repairing Eskom’s depleted balance sheet is a major challenge for South African President Cyril Ramaphosa, who replaced Jacob Zuma as president in December 2017.

Sources in the ANC have said Eskom assets may be sold but this would likely face union opposition.