Today, after four rounds of tough negotiations, Solidarity reached a three-year wage agreement with Eskom. The agreement was concluded in collaboration with the metalworkers union Numsa and the National Union of Mineworkers (NUM).
Among other things, an inflation-related increase of 7% was agreed upon.
This is the first time since 2010 that a wage agreement could be reached without disruption.
The agreement provides, among other things, that the 27,300 workers who form part of Eskom will receive a 7% salary increase per year for the next three years (from 1 July 2023 to 30 June 2026), and the housing allowance will also cover the next three years increased by 7% per year for the next three years.
This while the workers will also receive a taxable cash amount of R10 000 per year over the next two years.
Numsa further agreed with Eskom to address the following issues within the next 12-month period:
- Income differences and salary differences
- Jan H Smith Loan
- Business scheme: vehicle and mobile phone allowances
- Fixed daily allowances
- Reimbursement for business travel
- Moratorium on the closure of power stations
Solidarity and Numsa consider the agreement a victory.
“With the signing of the agreement, the focus of all role players can now shift to the termination of load shedding because three years of labor peace is the outcome of the agreement. The hope also exists that the content of the agreement will limit the outflow of skilled employees, but will also attract skilled employees back to Eskom,” says Dr. Dirk Hermann, managing director of Solidarity.
“The agreement can be described as a victory for collective bargaining after a settlement was reached for the first time since 2010 without a deadlock or some form of industrial action, and it was also exceptional that the parties agreed to a multi-year agreement at the eleventh hour, after it was not initially a consideration. Unions have also agreed to remove many compensation-related demands, so that the focus can be solely on a salary increase.”
Numsa spokesperson Phakamile Hlubi-Majola says the agreement is a sign of an improvement in the relationship with Eskom.
“Part of our contribution is the signing of a multi-year agreement so that there is labor stability. This will allow workers at Eskom to focus on quality maintenance, without interrupting that process with annual wage talks,” says Hlubi-Majola.
Eskom’s acting group head, Calib Cassim, says the mutual agreement will go a long way in stabilizing the power supplier by giving Eskom enough space and time to work together to prioritize the 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,” says Cassim.
