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Eskom in wage negotiations with unions

───   09:24 Sat, 25 Jun 2016

Eskom in wage negotiations with unions | News Article

Johannesburg - Eskom is currently in wage negotiations with its three recognised trade unions, the National Union of Metalworkers of South Africa (NUMSA), the National Union of Mineworkers (NUM) and Solidarity that commenced in May 2016. 


The third round which was planned to be the last one was held on 20 – 22 June 2016. Eskom presented its final offer of 7% across the board for all employees. At the end of the proceedings the Trade Unions requested time to engage their respective membership and revert back to Eskom. A final round of negotiations has therefore been scheduled for 13 - 15 July 2016.

The Trade Unions tabled a range of demands on the increase in basic salary ranging between 9.5% and 20%. Demands around the improvement of current employee benefits and the introduction of new benefits implied an increase in the total cost of employment of between 10% and 35%.

In terms of the Eskom Conditions of Service, Bargaining Unit employee salary increases are due for implementation annually on 1 July.

During the 9 days of negotiations, the trade unions made limited adjustments to any of the demands tabled. Eskom on 22 June 2016 tabled a final salary offer which included among others a  7% across the board increase for all employees.

Eskom tabled a further increase based on a sliding scale ranging between 0 and 2% for employees in the lower half of the salary scale. The implication is that employees will receive a salary increase ranging between 7% and 9% if the Eskom offer is implemented. The implication being that 44% of bargaining unit employees will receive an increase of between 8% and 9%

The offer also includes an adjustment of 5.6% to key allowances impacting on the operational side of the business.

Eskom says it remains committed to engaging organized labour in terms of its existing agreements on matters pertaining to bargaining unit employees and their conditions of service as well as transformation.

Statement Supplied

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