Eskom to look at other ways of reducing staff

Reading Time: < 1 minute

Eskom says it will seek ways of reducing staff costs other than cutting jobs. This is after it halted a plan to offer workers voluntary retrenchment deals.

Eskom Chairperson Jabu Mabuza announced last month said that the power utility was weighing its options to reduce staff by 4.2% to 31 675 employees for the 2018/2019 financial year.

This week reports emerged yet again that the power utility plans to retrench 15 000 workers as part of its turn-around strategy.

Eskom Spokesperson Khulu Phasiwe says if they decide to retrench unions will have to be notified first and thereafter negotiations will have to take place.  The cash strapped power utility is depending on government support to service its R368 billion debt.

This year, Eskom applied to the National Energy Regulator of South Africa (Nersa) to raise electricity tariffs by 20 %. Nersa granted the power utility 5.2% with effect from 1 April.

Phasiwe says they want to finalise wage negotiations with unions this week. He says the issue of retrenchments is not on the agenda.