Eskom, unions sign 7% wage hike deal

Eskom, unions sign 7% wage hike deal

Eskom and three of the trade unions representing workers have signed a three-year wage agreement.

Eskom_AFP
AFP

The power utility and the National Union of Mineworkers, National Union of Metalworkers of South Africa and Solidarity have agreed on a 7% salary increase.


The agreement was signed after back-and-forth negotiations between the unions and the embattled power utility.


The three-year agreement, which is valid from 1 July to 30 June 2026 includes a 7% wage increase across the board, a 7% housing allowance increase and a once-off taxable payment of R10 000 to all employees for years one and two of the agreement. 


Numsa's Phakamile Hlubi-Majola hailed the agreement as a victory for workers.


"We are coming from a dark period where Eskom was led by the racist, clueless (former CEO) Andre 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 Andre’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. 


“He wanted workers to pay for Eskom’s financial challenges and used them as a scapegoat for his glaring failures to motivate workers, and to drive a program to increase the Energy Availability Factor at the power utility," said Hlubi-Majola.


Solidarity general secretary Gideon du Plessis described the agreement as historic.


"This means it will motivate the workers, especially the skilled workers and the end result means we are going to have labour peace for the next three years and now all the focus can shift to resolving the energy crisis, especially load shedding," says Du Plessis.


Eskom’s acting Chief Executive Calib Cassim said the agreement will go a long way in stabilising the power utility.


"Eskom with sufficient space and time to collaboratively work together to urgently address our most pressing challenges.


“It is worth noting that this is the first time in more than a decade that the parties have reached an agreement in the room," said Cassim.


 

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