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NUMSA condemns Eskom for the zero per cent wage offer

25 May 2018, Posted in Press Releases

The National Union of Metalworkers of South Africa (NUMSA) condemns Eskom for the zero per cent wage offer. Wage talks opened up at the power utility this week and the state owned entity said it could not afford to increase wages at all. Eskom claims that by denying workers an increase they are saving the State Owned Enterprise (SOE) from a deeper crisis. We reject this with the contempt it deserves!

The reason Eskom is unable to afford to increase salaries is because it has squandered billions through corruption and mismanagement. The changes to the board have not yet recovered a cent of all the monies which were stolen or looted by some members of Eskom management with the help of the board. Furthermore, there have been no arrests or prosecutions for the role that senior executives and board members played in bringing Eskom to the brink of financial ruin.

The finalization of the 27 IPP projects no doubt played a role in this situation. The Independent Power Producers are going to cost R1.2 trillion which is more than the nuclear deal which was condemned because it was too costly. In 2016 the project cost Eskom a staggering R9 billion. Eskom has admitted on several platforms that it cannot afford to sustain the IPP’s and that the project is too costly and yet bizarrely the state is proceeding with the roll out.

NUMSA believes that the IPP project is nothing more than another kind of state capture. The decision by the Energy minister Jeff Radebe to finalize the contracts was completely reckless and senseless. Thousands of working class families in Mpumalanga will suffer because the SOE plans to shut down four coal powered power stations in that province in order to accommodate the IPP’s. According to Eskom’s own report commissioned by KPMG in 2017 at least 92 000 jobs at risk in Mpumalanga if the power stations are shut down! That is why we are continuing with our legal action against the Energy Department on the decision to conclude the IPP contracts. We will not allow the ANC led government to continue to loot SOE’s like Eskom at the expense of the working class majority.

Aluta continua!

The struggle continues!

Issued by Irvin Jim

NUMSA General Secretary

For more information, please contact:

Phakamile Hlubi-Majola

NUMSA Acting Spokesperson