Eskom’s new wage bill will not impact negatively on its balance sheet: Numsa

The National Union of Metalworkers of South Africa (Numsa) says Eskom’s new wage bill will not impact negatively on the power utility’s balance sheet.

Numsa and the National Union of Mineworkers (Num) have signed a wage deal with Eskom of 7% across the board and R400 hikes in housing allowance.

Eskom says the salary increases will hike its wage bill by over R1 billion.

Numsa spokesperson Phakamile Hlubi-Majola says, “I think if Eskom claims that our wage bill is going to impact negatively on their balance sheet, they are lying. We have demonstrated very clearly in the Central Bargaining Forum that not only are our wage demands affordable, but they have zero impact on the wage bill.”

“For the last 4 years, Eskom workers have not had a meaningful increase. Their wage bill has remained flat at R17.4 billion – while in that same period the cost has skyrocketed from R85 billion to R116 billion. So we are not going to accept any claim that they cannot afford,” says Hlubi-Majola.

The audio below is the full interview with Numsa spokesperson Phakamile Hlubi-Majola:

Latest wage increase is unaffordable

Meanwhile, Eskom says the latest wage offer to workers is unaffordable.

The agreement also includes the reinstatement of changes to conditions of service and a R400 increase to the housing allowance.

Human Resources Executive at Eskom, Elsie Pule says, “I think from an Eskom point of view, these were very prolonged engagements, they were not easy. I must put it on record that the offer that we signed today, we actually can’t afford it as an organisation.”

“We need to make plans to find additional money to fund this agreement. The impact on our wage bill is in excess of a billion.”

In the video below, Eskom spokesperson Sikonathi Mantshantsha reacts to the wage agreement with unions:

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