The National Union of Mineworkers (NUM), representing around 15,000 workers at Eskom, is calling for a wage increase of up to 15% as negotiations are set to commence. This demand significantly exceeds the current inflation rate of 3.3%, reflecting the union’s push for higher compensation following the utility’s recent recovery.
Eskom has stabilised its power grid after enduring years of severe blackouts and recently reported its first profit in eight years. The utility plans to raise debt after having relied on substantial government bailouts to support its operations.
While Eskom has acknowledged the union’s demands, a spokeswoman stated that specific comments on wage requests would not be made until formal negotiations begin. The utility emphasised its commitment to engaging constructively with all recognised unions through the established central bargaining forum.
However, tensions may arise early in the negotiations due to Eskom’s proposal allowing newly unbundled and legally separated units to establish their own union recognition agreements. The NUM has expressed concerns that this decentralisation could weaken trade unions, insisting that all entities should adhere to agreements made with Eskom’s holding company.
Eskom has been working on a long-term strategy to separate its operations into generation, transmission, and distribution units, aiming to enhance profitability and facilitate electricity trading with private producers. The utility stated that any future adjustments related to these structural changes would be discussed transparently with all stakeholders involved.
Past wage negotiations have proven challenging for Eskom, even when the utility cited funding constraints for salary increases. During a period of severe electricity outages, labour agreements resulted in a 7% annual raise for three years. The current wage agreement is set to expire in June 2026.