Tariff ’s wage impact

ESKOM’S request for a 19.9% tariff increase could have a major negative impact on the current public service wage talks, including the possibility of labour having to reconsider demands to ensure a better outcome for public servants.

The PSA (Public Servants Association), which represents more than 230 000 employees, supports calls for the National Energy Regulator of SA) to reject the proposed tariff. Labour, on October 5, tabled its wage demand for public servants to the employer in the Public Service Co-ordinating Bargaining Council. Response to this is still outstanding.

“This exorbitant request from Eskom will no doubt have negative consequences for fair wage increases for public servants. The impact of such a tariff hike will have a severe effect on workers’ disposable income. It must be noted that at the time of labour formulating the demand, such a steep increase was not considered,” said PSA deputy general manager Tahir Maepa.

“Eskom is one of the stateowned enterprises that continues to make headlines related to the gross mismanagement of its finances through ongoing corrupt activities by individuals for self-enrichment. It simply cannot be expected that ordinary citizens and the country’s workers have to suffer to fund corrupt activities,” said Mr Maepa.

He reiterated that the PSA would not be prepared to compromise the livelihood of its members.

“The PSA will not accept any excuses about lack of sufficient fiscus in the face of widespread mismanagement that impacts on thousands of public servants who can hardly afford to buy electricity based on increasing affordability.” Priscilla Souman Public Servants Association