Eskom's wage offer disappointing - Solidarity

Trade union Solidarity said it was disappointed with Eskom's latest wage offer of 5,6% and furthermore expressed its concern over the electricity giant's proposal for a five-year agreement. Meanwhile, Eskom has referred the matter to the Commission for Conciliation, Mediation and Arbitration (CCMA), claiming the negotiations reached a deadlock, although trade unions wanted to continue with the negotiations.

Deon Reyneke, Head of Solidarity's Metal, Engineering and Electrical Industry, said trade unions had called for the wage negotiations to carry on, as the talks had according to them not reached a stalemate yet. Eskom turned down the request, however, and referred the matter to the CCMA. ‘It is worrying that Eskom's offer is still below the current inflation rate. Bearing in mind that the CPI inflation rate may increase by the end of the year and given that fuel and food prices have risen sharply, Solidarity had no choice but to turn down Eskom's wage offer for a 5,6% increase,' he said.

Eskom attributes its paltry wage offer to the fact that Nersa had turned down its application for a 16% tariff increase and granted just 8%. Solidarity is demanding a 12% wage increase. ‘We are, however, still more than willing to negotiate with Eskom and will submit any fair offer from the employer to our members.'

Statement issued by Deon Reyneke, Head: Metal, Engineering and Electrical Industry, Solidarity, July 16 2013

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