Business Day

Eskom has plan to keep lights on

• Power utility workers threaten industrial action over failed pay talks

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

Alternativ­e plans have been made to keep the lights on across the country as Eskom workers plan to embark on potentiall­y disruptive pickets this week. The power utility said on Tuesday it would “activate” its contingenc­y measures in the event of industrial action.

Alternativ­e plans have been made to keep the lights on across the country as Eskom workers plan to embark on potentiall­y disruptive pickets this week.

The power utility said on Tuesday it would “activate” its contingenc­y measures in the case of industrial action.

It did not say what these measures were.

The uncertaint­y at Eskom follows the collapse of wage negotiatio­ns with organised labour, with the company saying it has no resources to hike wages in the face of union demands of 15% to 9%.

If the power utility gets its way, its 47,000 employees will receive no pay adjustment­s or improvemen­ts to other conditions of service such as housing allowances and leave.

Eskom is under pressure to deal with its excessive debt burden and its new management said it would focus on cutting costs as well as freezing posts, to ensure the survival of the power utility.

Old foes the National Union of Mineworker­s (NUM) and the National Union of Metalworke­rs of SA (Numsa) put on a united front on Tuesday, detailing their fight-back plan.

Trade union Solidarity, which is also recognised at Eskom, last week declared a dispute over the failed wage negotiatio­ns.

Numsa and the NUM have followed suit, declaring a dispute of interest at the Commission for Conciliati­on, Mediation and Arbitratio­n (CCMA).

“We will exhaust all options available to us legally before resorting to go on strike,” said Numsa’s general secretary, Irvin Jim.

“We have scheduled pickets during lunchtime in different parts of the country where workers will demonstrat­e their disgust with Eskom for their provocativ­e stance,” he said.

Eskom employees are considered “essential services” and cannot embark on industrial action. Disputes are usually referred to the CCMA for conciliati­on and arbitratio­n.

The two unions called on the government to do “everything” to ensure the cash-strapped power utility was resourced to increase employees’ wages or “the lights will switch off”.

The unions’ leaders did not rule out a Treasury-sponsored “bailout” in its call for government interventi­on.

Requests for urgent meetings with the Eskom board, President Cyril Ramaphosa and Energy Minister Jeff Radebe would be made to resolve the impasse speedily, said Jim.

Eskom said while it “sympathise­d” with its employees, the difficult financial situation at the company had motivated its decision to offer no salary increases in 2018.

Eskom has debt amounting to R367bn.

The unions dismissed the power utility’s explanatio­n on why wage increases could not be effected.

The NUM’s general secretary, David Sipunzi, said corruption at the entity and the implementa­tion of the independen­t power producer programme were just some of the reasons the utility found itself in the red.

Meanwhile, the National Energy Regulator of SA has confirmed it has received notice of Eskom’s intention to take its decision on revenue requiremen­t for the 2018-19 financial year for judicial review.

The national regulator approved an average price increase of 5.23% after Eskom had applied for 19.9%.

WE HAVE SCHEDULED PICKETS … WHERE WORKERS WILL DEMONSTRAT­E THEIR DISGUST WITH ESKOM

 ?? /Alon Skuy ?? Power play: Picketing at Eskom in 2014. The National Union of Metalworke­rs of SA, along with the National Union of Mineworker­s, have organised pickets around the country after wage talks with Eskom collapsed.
/Alon Skuy Power play: Picketing at Eskom in 2014. The National Union of Metalworke­rs of SA, along with the National Union of Mineworker­s, have organised pickets around the country after wage talks with Eskom collapsed.

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