Eskom and unions agree on 7% wage increase

The National Union of Mineworkers (Num), National Union of Metalworkers of South Africa (Numsa) and Solidarity have reached a wage increase agreement.

This a few weeks after rejecting wage offer of 4.5%.

“We have rejected the wage proposal made by Eskom management. What they have basically proposed is a 0,75% increase and this is not even based on CPI. Eskom is not taking into account the impact of the cost of living on ordinary workers of Eskom. Our members at the CBF have been denied proper increases, whilst their benefits and conditions were slashed,” said Numsa at the time.

The parties have also reached a three-year agreement valid from 1 July 2023 to 30 June 2026. Wages will be increased by 7% across the board for year one, 7% for year two and 7% for year three.

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The increase for year one will be implemented from the 30th of June 2023 and will be implemented in term of Eskom’s remuneration principles, said Numsa.

Housing allowance will be increased by 7% for year one, 7% for year two and 7% for year three. Eskom will also pay a once-off taxable payment of R10,000 to all employees for year one of the agreement.

A once-off taxable payment of R10 000 will also be paid to workers in the 2nd year of the agreement.

Within the next 12 months, parties will engage on income differentials and salary disparities, Jan H smith Loan, business scheme vehicle and cellphone allowances, fixed daily allowances and reimbursement for business travel.

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“This agreement is a sign of an improvement in the relationship with Eskom. We want continue on this path. And part of our contribution is the signing of a multi-year agreement so that there is labour stability,” said Numsa.

“This will allow workers at Eskom to focus on quality maintenance, without interrupting that process with annual wage talks.”

“The collective agreement will go a long way in stabilising our organisation by providing Eskom with sufficient space and time to collaboratively work together to urgently address our most pressing challenges,” said Eskom’s acting Group Chief Executive, Calib Cassim.

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“It is worth noting that this is the first time in more than a decade that the parties have reached agreement in the room.”