Talks between Eskom and its largest wage unions have reached a standstill, the latest crisis for the utility that is struggling to increase its electricity supply.
Unions “responded with dismay” after negotiations failed to reach a conclusion during Wednesday’s final round. It was then that Eskom pointed out that it was unprofitable and reiterated that he had made his final offer himself, the National Union of Miners said in a statement seen by Bloomberg. The negotiations will now be extended to a fourth round after the groups have consulted with their members.
Any protests by workers can further affect nutrition. Eskom generates nearly all of South Africa’s electricity and has implemented frequent nationwide power outages that hit a record last year, mainly due to failures at old and poorly maintained coal plants. the sabotage of key equipment has also increased in recent weeks, increasing the challenges.
The utility is “sacrificing workers’ benefits, pension payments and wages in order to finance the inflated cost of primary energy,” the National Union of Metal Workers of South Africa said in a statement Thursday. The group lowered its demand to a 12% wage increase across the board.
Eskom confirmed that it has offered annual increases of 5.3%, 4.5% and 4% in the latest round of negotiations. He declined to comment further.
The company’s latest major wage negotiations in 2018 Broken in union protests, considered illegal because the utility provides an essential service, which caused the electricity shortage. A three-year agreement was then signed for wage increases of up to 7.5% per annum.
The NUM called on its members to “remain steadfast” and focused on its demands, according to the June 8 briefing paper.