Reuters reports that power utility Eskom indicated on Friday that it would be implementing a 1.5% salary increase from 1 July and adjust some employee benefits, thereby defying union demands for a far larger hike and their opposition to the adjustments.
Wage talks between the unions and Eskom ended earlier in June without agreement and arbitration has yet to commence. Eskom’s offer in the talks was dependent on savings from benefits, including overtime and travel, where the state-owned enterprise said it had found “excesses”. Unions rejected the offer after demanding increases of between 9.5% and 15%. Eskom said in Friday’s statement that its salary position would allow it to protect jobs and manage risks to its sustainability. “The generation, distribution and transmission of electricity are classified as essential services. Eskom employees are therefore legally prohibited from participation in unlawful industrial action,” it pointed out. As of Friday, Eskom’s three unions, namely the National Union of Mineworkers (NUM), the National Union of Metalworkers of SA (Numsa) and Solidarity, had not yet responded to the latest development.
- Read the full original of the report in the above regard by Alexander Winning at BusinessLive
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