The Congress of South African Trade Unions is vehemently opposed to the salary of R4.96 million now being paid to Eskom CEO Jacob Maroga. It has risen by 27%, following a 9% salary increase on top of the amount paid to bring him up the CEO salary level.
This is a slap in the face for electricity consumers who are struggling to pay the two massive tariff increases, of 31.3% this year and 27.5% last year. They are now being threatened with yet another massive increase, which Maroga, Eskom Chairperson Bobby Godsell and Public Enterprises Minister Barbara Hogan told parliament is ‘inevitable'.
Even Maroga's salary was a reward for increased profits, it would be excessive, but Eskom expected to make a loss of R10 billion this year! If CEOs are rewarded for rising profits why are they not penalised for rising losses?
How can a public utility which is mandated to provide an efficient and affordable service to the people of South Africa possibly justify paying out such a vast salary to the person in charge? COSATU agrees with the Young Communist League that "every cent that Eskom has should be directed towards making electricity cheaper and accessible for the poor and the working class".
Bobby Godsell argued to Parliament that: "We want the best people in the world to run Eskom and we want them to be adequately rewarded." But R5 million is not ‘adequate'; it is exorbitant. If indeed that is the going rate for CEOs in the private sector it confirms COSATU's view that the salaries, bonuses and perks of top business leaders are outrageously high, especially when contrasted with the wages of their workers.
The culture of crass materialism is in danger of becoming normal and acceptable, which is why COSATU is waging a big campaign against it. South Africa is one of the most unequal societies in the world and inequality is getting even wider, as CEOs salaries keep shooting up to such high levels.
South Africa has to return to the principles of public representatives being in office to serve the people and not to enrich themselves, and that has to include public utilities like Eskom and its CEO.
Statement issued by Patrick Craven, COSATU national spokesperson, September 16 2009
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