Cape Town – Eskom has reached an agreement with unions representing its employees for the first time in over a decade.
The agreement includes a 7% salary increase for non-managerial employees over a three-year period, starting from July 1, 2023, until June 30, 2026.
The negotiations involved Eskom, the National Union of Mineworkers, the National Union of Metalworkers of South Africa, and Solidarity.
“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,” EWN quoted Eskom interim spokesperson Daphne Mokwena as saying on Thursday.
Troubled power utility Eskom has signed a three-year wage agreement with major unions. Workers will receive 7% hikes across the board each year with effect from 1 July. Numsa’sPhakamile Hlubi-Majola unpacks this further.
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The parties also agreed on a 7% increase in the housing allowance over the three years and a one-time taxable payment of R10 000 for the first two years.
According to News24, Eskom’s acting group chief executive, Calib Cassim said: “It is worth noting that this is the first time in more than a decade that the parties have reached agreement in the room.”
Numsa and NUM initially sought a 15% increase, along with various other demands, while Solidarity aimed for 10.1%.
Initially, Eskom offered a 3.75% hike, but later increased it to 5.25%. However, this revised offer was subsequently rejected by all three unions.
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Compiled by Betha Madhomu