Labour unions reject Eskom's latest wage rise offer

The three recognised trade unions at Eskom have rejected its revised 5.25% pay rise offer at a third round of wage talks, the company said on Friday.

The National Union of Mineworkers (NUM), the National Union of Metalworkers of South Africa (Numsa) and Solidarity have been in negotiations since April with the struggling power utility.

Eskom said it had raised its offer to a final 5.25%, up from an earlier offer of 4.5% and an initial proposal of 3.75%.

The unions want between 9.5% and 12%.

NUM and Numsa had initially demanded a 15% increase while Solidarity sought 10.1%.

“We rejected the proposal because we feel that Eskom can do better. Food inflation is extremely high, and the cost of fuel and basic goods has skyrocketed,” Numsa said.

“And to make matters worse, the SA Reserve Bank has hiked interest rates, which means our members are going to struggle even more to make ends meet.”

The central bank raised its main interest rate on Thursday to a 14-year high, a move its governor described as “bitter medicine” needed to tame inflation.

Eskom and the unions will hold a fourth round of negotiations on June 13 and 14.

“Eskom is hopeful that it and the labour unions will find each other for the benefit of the company and in the best interest of the country,” it said. 

Reuters