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Eskom union wants performance bonuses, electricity allowance, danger pay - and 15% pay hike

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  • Eskom's biggest union wants a pay hike of 15% as well as the reinstatement of performance bonuses and a R7 000 housing allowance. 
  • Also on its list of demands is a standardised cellphone allowance and a R1 500 electricity allowance.
  • It further wants essential worker or danger pay, as well as a separate voltage work allowance. 
  • For more financial news, go to the News24 Business front page.

Wage negotiations are set to start at embattled power utility Eskom next week, its biggest union the National Union of Metalworkers (NUM) confirmed on Friday.

Talks are set to for the 19, 20 and 21 April at Cedarwoods in Sandton, Johannesburg.

All unions organising in Eskom – namely NUM, the National Union of Metalworkers of SA (Numsa) and Solidarity – have officially submitted their wage demands, NUM said. This comes as the power utility has implemented load shedding nearly every day in 2023.

This year's wage talks follow an impasse in 2022 that culminated in an unprotected strike which dealt a heavy blow to Eskom's already fragile capacity to generate electricity. The state-owned power utility ultimately reached a 7% wage increase agreement with unions after a week of protests and escalating load shedding. 

NUM – which this year wants a 15% salary increase across the board – wants the "apartheid wage gap finalised as per agreement" and gave further details of its other demands in a statement on Friday. In addition to the salary bump, NUM wants the reinstatement of performance bonuses, as well as the inclusion of housing allowances, cellphone and electricity allowances.

Solidarity wants a pay increase of 3 percentage points above the average inflation rate (7%), Bloomberg reported on Thursday.

Numsa declined to comment.

NUM – which has about 14 000 members at Eskom – wants the housing allowance to be raised to R7 000 and for employees to be allowed to buy houses anywhere in the country.   

It further wants the company contribution to medical aid to shift to 80%, with a 20% contribution by employees, as well as a standard cellphone allowance of R1 000 plus a R1 500 electricity allowance for Eskom workers.

Furthermore, it wants a once-off R1 500 essential worker or danger allowance, as well as a separate voltage work allowance on a sliding scale; a R5 000 rural allowance; a 15% increase on all other conditions-of-service allowances; and a performance bonus set at 25% of annual salary.

The union also wants Eskom's study benefit – known internally as the Jan H Smith scheme – to increase to R20 000 per child.

Its other demands include:

  • A R10 000 allowance for all qualifying employees through Eskom's so-called vehicle X-scheme;
  • A R1 000 truck driver allowance;
  • For certain lower salary scales to be scrapped altogether and for all employees to be shifted to a specified level;
  • For all trainees to be absorbed into Eskom;
  • Four weeks of paternity leave without impacting contingency leave;
  • Pay day to move to Friday if the 26th of the month falls on a Sunday;
  • And for anyone retiring at 60 to leave with no penalties.

In response to questions from News24 on Friday, Eskom said it had contingency plans in place to deal with possible tensions that could arise during the wage talks, but that these were confidential.

It declined to comment on the three unions' demands other than to confirm receipt, saying it had yet to complete a thorough analysis and costing. 

* This article was updated at 16:20 on Friday 14 April to include comment from Eskom.

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