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NUMSA rejects Eskom’s latest wage offer of 4,5% increase

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PHUTI MOSOMANE

THE National Union of Metalworkers of South Africa (NUMSA) has announced its rejection of Eskom’s latest wage offer, which was presented at the Centralised Bargaining Forum (CBF) on Tuesday.

According to Numsa, Eskom proposed a 4.5% wage increase across the board, marking a departure from the initial offer of a 3.75% raise.

“We are also dissatisfied with their insistence on a one-year agreement. Moreover, they have not fully addressed our additional demands and wish to defer them to other entities such as the Central Consultative Forum (CCF) of Eskom,” said Numsa General Secretary Irvin Jim.

The unions are currently advocating for a 12% wage increase, revised from their initial request of 15%.

Workers are also calling for a two-year wage agreement, an extension of maternity leave to six months with full pay, and the implementation of 14 days of paternity leave.

Furthermore, the unions demand an 80% medical aid contribution from the employer, with the remaining 20% to be contributed by workers. They are also seeking an increase of R1100 in housing allowance.

Additionally, Numsa insists that Eskom guarantees the non-closure of any power stations.

“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,” Jim said.

He said the power utility is not taking into account the impact of the cost of living on ordinary workers of Eskom. 

“The finances presented by Eskom management demonstrate that it can definitely afford to pay workers demands because they are not doing anything to intervene in the biggest cost drivers, which are the Primary Energy costs (70% of its operational cost) which have ballooned from R83 billion, in the 2017 financial year, to R155 billion in the 2023 financial year,” Jim said, adding that the cost of workers’ salaries and benefits have remained the same since 2016/17. 

Unions involved in the negotiations are Numsa, Solidarity, and the National Union of Mineworkers (NUM).

The talks will continue until the 25th of May.

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