Eskom to shed exec load
‘Thuma Mina board must consult’
Eskom’s plans to retrench some of its more than 400 executives in a bid to cut high remuneration costs have been met with resistance from its two dominant unions.
The National Union of Mineworkers (NUM) said it was “flabbergasted to learn” about the looming retrenchments.
The union said it had not received any notification of Section 189 as per the Labour Relations Act (LRA).
“NUM demands that this Thuma Mina board must consult within parameters of the law. Section 189 (1) is categorically clear that if Eskom contemplates dismissing workers on operational requirements, it must apply for Section 189 for consultation with the NUM for engagement in a meaningful consensusseeking process in order to avoid or minimise dismissals,” said Paris Mashego, NUM’s energy sector coordinator.
Mashego said they were still awaiting discussions on Eskom’s business model which was aimed at “curbing cost and revamping Eskom’s dwindling revenue”.
The National Union of Metalworkers of SA (Numsa) has already indicated that it would be challenging the retrenchments.
Numsa spokesperson Phakamile Hlubi-Majola said they believed that looting and corruption were much bigger problems at the power utility which affected its financial situation.
“We reject any attempt to reject our members at Eskom ... no consultation has taken place on this matter,” she said.
Solidarity, another Eskom union, yesterday said it was “a very sad” day that Eskom was forced to lay off workers due to a number of factors including the growing municipal debt and high price of coal which impacted negatively on business.
“Sales are also down as a result of the slow economy, so these retrenchments are unavoidable hence we say this is a very sad day,” Tommy Wedderspoon said.
The state-owned power utility has more than 400 senior and general managers and about 25 senior executives.
It said “despite its efforts to curb expenditure, Eskom’s operating costs have continued to increase dramatically while output has remained largely unchanged”.
“Eskom’s board of directors has decided to review the company’s organisational design to enhance operational and cost efficiencies. The board has approved a Section 189 process for its executive structure. Only members of the executive structure will be impacted,” Eskom said.
Eskom has over the past 10 years amassed almost 16 000 additional employees, with a total of more than 48 500.
It now has 207 more senior managers and executives than it had 17 years ago.
Eskom was yesterday unable to respond to questions about how many executives or senior managers would be affected.
The company’s bloated structure has been blamed by economists and business analysts for its financial difficulties.