Eskom risks eroding the financial gains it registered in 2025, its first in eight years, if it caves in to labour’s demands for wage increases of up to 15%.
Eskom has just over 40,000 employees. Its wage bill for 2025 stood at R43.1bn, with the average cost per employee coming in at about R1.03m per annum. That’s roughly R86,000 a month.
If Eskom caves to the 15% wage demand, workers’ salaries would jump by R12,900 to about R98,900 a month, a hike that could affect the financial gains Eskom posted in the 2025 financial year, its first in eight years.
This after the three recognised unions at Eskom, the National Union of Metalworkers of South Africa (Numsa), the National Union of Mineworkers (NUM) and Solidarity, stuck to their guns demanding up to 15% when talks got under way on Tuesday. The inflation rate is 3.6%.
The demands come as Eskom reported a profit after tax of R16bn for 2025, its first profit in eight years. Profit before tax was R24bn.
Eskom has achieved remarkable progress, following years of state capture when it was hollowed out and repurposed to serve the narrow selfish interests of the politically connected. It also survived years of constant load-shedding that shed billions off the economy as the power utility struggled to power the energy heavy manufacturing sector.
Eskom’s turnaround was supported by government debt relief, higher electricity tariffs and a significant decrease in load-shedding, which led to lower diesel costs.
The parastatal received a R254bn relief package from the Treasury in 2023 in a programme that enjoined local government to pay their dues to Eskom. Municipal arrears rose to R95bn from R75bn, with the state-owned company estimating the debt would grow to more than R300bn by 2030 if no sustainable solution were found.
Eskom is the cornerstone of our economy. A strike will affect service delivery very badly and could take us back to the load-shedding era. That would be a disaster
— Michael Bagraim, DA MP and labour analyst
Eskom’s wage bill has been increasing over the years, with the average cost per employer surging from about R38,000 in 1990 to about R913,000 in 2024, though the latter figure is inclusive of annual salary increases and performance bonuses, among others.
Labour’s demands come about four months after unions reached a wage deal with cash-strapped ports operator Transnet for increases of 6% each year over a three-year period.
On Wednesday, Eskom spokesperson Daphne Mokwena told Business Day that the power utility had tabled a “3.5% [wage offer] based on average CPI [consumer price index]”. Mokwena could not immediately be reached for comment later on Wednesday.
NUM Eskom chief negotiator Olehile Kgware said the Eskom offer was a “mockery” and the union would not even negotiate on it.
“They’ve worked very hard to turn Eskom into the profitable company that it is today. The 3.5% offer is nothing, so at this stage we are still firmly on 15%,” Kgware said.
Numsa and NUM are demanding a 15% across-the-board wage increase, while Solidarity is demanding 10% or CPI plus 4%, whichever is greater.
There also seemed to be confusion on what Eskom’s opening offer really was. Solidarity energy sector co-ordinator Deon Jenkins said: “Eskom’s offer yesterday [Tuesday] was not 3.5%. We are unsure as to what their offer actually was and parties are trying to clarify their actual offer. Eskom is expected to make a clear and unambiguous offer during today’s [Wednesday] session.”
DA MP and labour analyst Michael Bagraim said at this rate the wage talks would take months to conclude. “It’s going to be a real nightmare. Eskom can’t afford a strike, and workers can’t afford a strike. The negotiations could drag through February 2026,” Bagraim said.
If the talks are protracted or parties do not find each other, then the whole negotiation process risks threatening the economy, he said.
“Eskom is the cornerstone of our economy. A strike will affect service delivery very badly and could take us back to the load-shedding era. That would be a disaster.”
Bagraim said he expects there will be a lot of “to-ing and fro-ing” between parties before they find each other.
Eskom’s turnaround was supported by government debt relief, higher electricity tariffs and a significant decrease in load-shedding, which led to lower diesel costs.
Eskom received a R254bn relief package from the Treasury in 2023 in a programme that enjoined local government to pay their dues to Eskom. Municipal arrears rose to R95bn from R75bn, with the state-owned company estimating the debt would grow to more than R300bn by 2030 if no sustainable solution were found.
According to documents Business Day has seen, NUM and Numsa are demanding a R7,000 housing allowance, a cellphone allowance (R1,500 for NUM and R2,000 for Numsa) and an electricity allowance of R1,500 for NUM and R2,000 for Numsa. The employer needed to contribute 80% to medical aid.
Business Day
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