SOUTH AFRICA: Eskom to Implement 1.5% Raise in Wages

• Eskom to implement wage increase

• Workers Union demand higher wage incrementUnions reject Eskom increment

Heavily indebted state-owned utility company Eskom has approved a wage increase of 1.5% for employees. The wage increment is to take effect from 1st July 2021. In addition to the wage increment, Eskom has approved the adjustment of benefits for some employees. This comes as Eskom and the Workers Unions are at loggerheads with the Unions demanding higher wages for its members.

The Unions have rejected the increase demanding an increment between 9.5% to 15%. In a letter to Eskom by the National Union of Mineworkers (NUM), the Union has threatened judicial measures to deal with the situation. Solidarity, another Workers Union, has said,  “We also do not view Eskom’s 1.5% increase as an offer because it is conditional in that employees should also accept a downward variation in conditions of employment. They will in most instances lose some parts of their income”.

In response to the Union, Eskom has said electricity services are essential, and therefore, employees are prohibited from participating in unlawful industrial actions. In a statement released earlier today, Eskom says, ”The generation, distribution and transmission of electricity are classified as essential services. Eskom employees are therefore legally prohibited from participation in unlawful industrial action”.