Cape Town - With plans to enter a fourth round of negotiations next month set in motion, Eskom was not likely to stick to its final offer of a 5.25% increase for employees, as unions forced its hand, rejecting all offers.
This is according to a labour expert, as Eskom and its three recognised trade unions – the National Union of Mineworkers (NUM), National Union of Metalworkers of SA (Numsa) and Solidarity, concluded the third round of salary talks on Thursday, again reaching a deadlock.
The first and second rounds took place on April 19 to 21 and on May 8 to 10. NUM and Numsa opened the negotiations with a request for a 15% pay hike while Solidarity asked for 10.1%.
Eskom responded with a 3.75% offer which was later increased to 4.5%.
During the latest round of negotiations, NUM and Numsa revised their demands to 11% and 12% respectively, while Solidarity revised its demand to 9.5%.
On Wednesday, Eskom revised its offer and made a final offer of 5.25%.
“Eskom’s final offer was rejected by all trade unions, however, all parties reached a settlement on the amendment of the Grievance and Disciplinary Procedures,” said Eskom.
“As a custom, the negotiations take place over three sessions of three-days each, however, this year all parties agreed to hold a fourth round of negotiations on June 13 and 14 with the view that there were prospects of reaching a settlement at the Central Bargaining Forum (CBF).
“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,” said Eskom.
Numsa secretary-general Irvin Jim said: “Numsa will be engaging its members at Eskom in order to seek a new mandate.
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 rocketed.
Government is planning to allocate R254 billion in debt relief to Eskom and not less than R70bn of this will go toward covering diesel costs over the next two years.
Load shedding stages between 3 and 6 will cost the economy approximately R204 million and R899m per day.
It is workers at Eskom who are working tirelessly to keep the grid from collapsing, and keep the lights on, therefore, Treasury must allocate money to meet the wage demands which workers are making.”
The NUM negotiating team in a letter said: “Last year, in the wage negotiations they gave us 5.35% which our constituencies rejected which ended up causing unnecessary chaos. We will need to seek a mandate from our constituencies before we can commit to any further move from 11%.”
Weighing in on where this could be headed, labour lawyer Michael Bagraim said unions had the country at ransom, as they could bring the already ailing power utility to a complete standstill.
“It is not normal but it is fully understood. They have the country to ransom. Eskom is already on its hands and knees. The organisation is completely broken. If they withhold their labour it will bring the entire organisation to a standstill.
“Government does not have the strength to try and fight it.
The unions fully understand that they have government by the throat. Government has given in to all the other wage negotiations. They cannot afford to pay the increase. But it is merely a waiting game. They will have to compromise and pay the unions beyond affordability.
We are on the cusp of a very important election and the ANC government cannot afford to anger the unions.
They will not stick to their final offer,” he said.
Cape Times