In a third round of wage negotiations, Eskom’s three recognized trade unions rejected its revised 5.25% pay increase offer, the company said on Friday.
Since April, the National Union of Mineworkers (NUM), the National Union of Metalworkers of South Africa (NUMSA), and Solidarity have been in talks with the utility, which is imposing the worst power cuts on record and has been mired in financial crisis for years.
Eskom announced in a statement that it had increased its offer to 5.25%, up from 4.5% previously and 3.75% initially.
The unions want wage increases ranging from 9.5% to 12%. NUM and NUMSA had initially sought a 15% wage increase, while Solidarity sought a 10.1% increase.
“We rejected the proposal (the latest offer from Eskom) because we believe Eskom can do better.” “Food inflation is extremely high, and the cost of fuel and basic goods has skyrocketed,” said NUMSA in a statement.
“To make matters worse, the South African Reserve Bank has raised interest rates, meaning our members will have to work even harder to make ends meet.”
South Africa’s central bank raised its main interest rate to a 14-year high on Thursday, describing the move as “bitter medicine” needed to control inflation.
On June 13 and 14, Eskom and unions will hold a fourth round of talks.
“Eskom is hopeful that it and the labor unions will find common ground for the benefit of the company and the country,” it said.
