• All Share : 51967.0824
    DOWN -0.48%
    Top40 - (Tradeable) : 46355.5984
    DOWN -0.58%
    Financial 15 : 16620.6125
    DOWN -0.02%
    Industrial 25 : 67132.5513
    DOWN -0.64%
    Resource 10 : 38668.9489
    DOWN -1.03%

  • ZAR/USD : 12.3446
    DOWN -0.61%
    ZAR/GBP : 19.2038
    DOWN -0.53%
    ZAR/EUR : 13.6408
    DOWN -0.08%
    ZAR/JPY : 0.1002
    DOWN -1.18%
    ZAR/AUD : 9.2593
    DOWN -0.28%

  • Gold US$/oz : 1173.3
    UNCHANGED0.00%
    Platinum US$/oz : 1081.35
    UNCHANGED0.00%
    Silver US$/oz : 15.74
    UNCHANGED0.00%
    Palladium US$/oz : 684.35
    UNCHANGED0.00%
    Brent Crude : 60.32
    UNCHANGED0.00%

  • All data is delayed by 15 min. Data supplied by Profile Data
    Hover cursor over this ticker to pause.

Mon Jul 06 09:04:25 SAST 2015

Eskom increase will kill jobs: Numsa

Sapa | 13 February, 2013 14:28
Numsa general secretary Irvin Jim. File photo.
Image by: Times Media

Eskom's proposed 16% tariff increase will wipe out 37% of small- and medium-sized companies, the National Union of Metalworkers of SA said on Wednesday.

"This electricity tariff increase will spell disaster," the union's general secretary Irvin Jim told reporters in Johannesburg.

"This huge electricity tariff will basically destroy the small manufacturing capacity we have."

Jim said seven foundries had already been closed, which had meant a loss of jobs.

If Eskom was granted the 16% increase it would destroy even more jobs.

Jim was talking on the sidelines of a meeting between business and unions regarding Eskom's proposed tariff increase.

The Steel and Engineering Industries Federation of SA's Hank Langenhoven agreed with Jim.

"The increases will have such an impact, and could be fatal," he said.

"There are quite a number of smaller companies on the brink of closing down."

Langenhoven said funding needed to come from somewhere. But the Eskom tariff increase would be fatal for the sector.

National Association of Automobile Manufacturers of SA director Nico Vermeulen, said the increase would reduce South Africa's future economic growth.

"Tariff increases should be restricted to CPI and anything over and above should be funded by long-term debt," he said.

"Long-term debt financing through bonds is already well established in South Africa. Transnet is an example."

Eskom needed to go to the market and issue bonds, which would introduce a high level of discipline at the parastatal.

SHARE YOUR OPINION

If you have an opinion you would like to share on this article, please send us an e-mail to the Times LIVE iLIVE team. In the mean time, click here to view the Times LIVE iLIVE section.