Johannesburg - The National Union of Metalworkers of SA (Numsa) has managed to avert a strike at Eskom. The union has secured a 7% wage increase for workers there.
The wage agreement comes as the embattled power company has seen a number of leadership changes and is currently undergoing an investigation for allegations of corruption and reports of criminal syndicates operating at the company.
The profitability of the company was also another issue during the negotiations with the unions.
Numsa spokesperson Phakamile Hlubi-Majola said the agreement was a three-year agreement that was valid from July 1, 2023, to June 30, 2026.
Wages will be increased by 7% across the board for year one, 7% for year two, and 7% for year three.
"The increase for year one will be implemented from June 30, 2023, and will be implemented in terms of Eskom’s remuneration principles. Housing allowance will be increased by 7% for year one, 7% for year two, and 7% for year three. Eskom shall pay a once-off taxable payment of R10 000 to all employees for year one of the agreement. And again, in the second year of the agreement, a once-off taxable payment of R10 000 will be paid to workers," Hlubi-Majola said.
She said all parties had agreed to engage on a number of issues within the next 12 months, including income differentials and salary disparities, the Jan H Smith Loan, business scheme vehicle and cellphone allowances, and fixed daily allowances.
"Reimbursement for business travel and a moratorium on the closure of power stations are among other issues," Hlubi-Majola said. She said Numsa viewed this agreement as a victory for workers at Eskom, who had been denied meaningful increases since the 2016/2017 financial year.
"We are coming from a dark period where Eskom was led by the racist, clueless André de Ruyter, who plunged the country into rolling blackouts because of his refusal to drive quality maintenance at power stations. We are in the process of trying to recover and repair what was destroyed during André’s tenure. At the same time, the same Andre de Ruyter tried to collapse centralised bargaining by imposing a 1.5% increase on the workforce. But he refused to intervene on Eskom’s true cost drivers, namely, coal costs, REIPP's, and diesel costs," Hlubi-Majola said.
The union thanked all parties involved in the negotiations.
The Star