Eskom says its proposed job cuts will not affect ordinary workers. The power utility has approved a plan to cut executive jobs as it struggles to bring down costs.
Eskom says the move is the first step towards the company’s proposed restructuring.
Eskom’s operating costs have continued to increase dramatically while revenue has remained largely unchanged.
Last month, Finance Minister Tito Mboweni indicated that Eskom’s workforce was bloated and unsustainable. He said that at least 30 000 jobs needed to be shed to stabilise the financial books.
Economist Mike Schussler says job cuts at Eskom are inevitable.
“We all know in SA that Eskom does have too many workers and managers – they will have to reduce. We are going to see people lose their jobs…not sure how many bit many managers will lose their jobs,” says Schussler.
Over 20 managers face job losses
Trade union Solidarity says over 20 managers at Eskom could face job losses. Eskom wants to reduce its top management as it struggles to bring down costs.
Solidarity’s chief executive Dirk Hermann says Eskom’s top management is bloated.
“Eskom restructuring process start on top level, that where the problem started. Eskom has a big management problem – it was poor and corrupt. The answer is not to cut workers but restore effective management at Eskom.”
