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Eskom rejects unions’ wage increase demands, offers 3.75%

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Eskom has rejected the wage demands presented by all three unions representing workers at the power utility.

The unions in turn have rejected Eskom’s 3.75% wage offer.

Both NUM and NUMSA are demanding 15%, while trade union Solidarity is demanding CPI plus 3%.

All the unions have called on Eskom to sign a two-year wage agreement.

The parties are currently in their first round of wage talks with the second round expected to start on the eighth of next month.

NUMSA’s Deputy General Secretary Mbuso Ngubane says, “We’re saying this is a process of timeously we engaging the employer to improve on the question of housing allowance. On the other allowances which is a standby allowance, response team etc. Our members were last given an increase in December 2017 up to this far they have not been given an increase on the question of allowances, therefore, we think that this time again we think that 15% on allowances as an increase is mostly justifiable.”

Meanwhile, Solidarity says Eskom came into the wage negotiations unprepared and this has delayed the first round of wage negotiations.

The union says Eskom can afford wage increases due to a notable improvement in electricity sales, reduced labour costs and income from independent power producers as reflected in its 2021-22 financial statement.

Solidarity’s General Secretary Gideon du Plessis says, “The agreement to be two years, then the long service award to be calculated as a percentage of the employer’s basic rate of pay at the moment is based on R20 000 cap, housing allowance to increase by 5%, all other allowances and benefits to increase at the same percentage as the final agreed salary increase. We also requested that the unilateral change to conditions of employment to change to be corrected in line with a specific ruling.”

 

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