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Eskom has announced that it has agreed on a 7% wage increase for all non-managerial employees over a three-year period.
From 1 July 2023 to 30 June 2026, Eskom employees will enjoy the wage increase. On top of this, the parties agreed to a 7% increase in the housing allowance over the three-year period and a once-off taxable payment of R10,000 for the first two years.
This comes after negotiations between the power utility and unions have been in the pipeline for months.
Unions involved included the National Union of Mineworkers (NUM), the National Union of Metalworkers of South Africa (NUMSA) and Solidarity.
Calib Cassim, the acting CEO of Eskom said: “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.”
“It is worth noting that this is the first time in more than a decade that the parties have reached an agreement in the room,” said Cassim.
Unions originally demanded a 15% wage increase in light of the cost of living crisis and soaring inflation. Unions argued that in light of the recent electricity tariff hike of 18.65% by the National Energy Regulator of South Africa (Nersa), Eskom would have enough money to support their demands.
This was then revised down to 12% however, Eskom continued negotiations.
On 19 April, the additional demands were as follows:
- Increase the housing allowance to R7,000 and allow employees to buy houses anywhere in the country.
- Shift medical aid coverage to 80%, with a 20% contribution from employees.
- Provide a cellphone allowance of R1,000.
- Offer an electricity allowance of R1,500.
- Provide a one-time R1,500 essential worker or danger allowance, along with a separate voltage work allowance on a sliding scale.
- Set the performance bonus at 25% of the annual salary.
- Grant a study benefit of R20,000 per child.
- Allow a car allowance of R10,000 through Eskom’s vehicle X-scheme.
Wage demands come as South Africa has faced its worst load shedding on record, with continuous and frequent rolling blackouts plaguing households and haltering businesses. Fortunately, for now, anticipated severe winter load shedding has not reached the dreaded stage 8.
The country’s power grid has remained relatively stable, with load shedding not exceeding stage 4, which is the lowest level in almost a year. Eskom had previously cautioned about grid pressure and anticipated challenges during the winter season.
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