Eskom’s CCMA move corners unions
Eskom’s decision to lodge a dispute at the Commission for Conciliation, Mediation and Arbitration (CCMA) has cornered trade unions after months of wage negotiations have failed to yield results.
Eskom’s decision to lodge a dispute at the Commission for Conciliation, Mediation and Arbitration (CCMA) has cornered trade unions after months of wage negotiations that have not yielded results.
The application will enable the CCMA to make a determination in the form of an award, after arbitration processes are concluded, in favour or against the state power utility.
The National Union of Metalworkers of SA (Numsa) and the National Union of Mineworkers (Num) have refused to sign a wage agreement the unions accepted in principle after Eskom said it would charge workers for embarking on an illegal strike. Eskom and the unions have been in negotiations over wages for close to three months since the power utility opened talks by proposing a 0% wage hike for employees. This led to the labour unrest that plunged the country into near darkness.
After public enterprises minister Pravin Gordhan forced the utility to improve its offer, Eskom managed to gain control at the talks.
The law requires that the CCMA tests the evidence provided by both parties, after which a commissioner may issue an arbitration award. The CCMA will view the allegations levelled against employees by Eskom’s management and the evidence submitted by unions before deciding how the parties should proceed.
The arbitration awarded by the CCMA will be legally binding on the power utility and the unions representing Eskom’s employees.
The unions, which have been heavily reliant on political pressure and who called on Gordhan to step in after the parties reached an impasse, will have no other fallback.
Last week, Gordhan said he could not intervene further in the wage talks after being called on by unions to do so.
He said he was awaiting the conclusion of the section 150 process that was under way (the declaration of a dispute with unions).
The CCMA intervened in the talks and proposed a wage settlement that was verbally accepted by unions a week ago.
However, by rushing to the CCMA, the power utility has prevented the possibility of Gordhan or any other political leader playing a role in the ongoing negotiations.
The CCMA will test the merits of the case lodged by Eskom purely on the basis of evidence submitted, without the kind of pressure that was exerted on Eskom by Gordhan.
The unions said on Sunday they were still awaiting a date from the CCMA on the start of the arbitration process.
At an arbitration hearing, a commissioner gives both parties an opportunity to fully state their cases.
The commissioner then makes a decision on the issue in dispute.
The wage agreement that will be signed by the parties when the matter is concluded at the CCMA now amounts to a 7.5% increase this year, 7% in 2019 and 2020, with an additional R10,000 once-off payment to employees.