Business
South Africa’s Eskom hikes pay offer to ward off strike
South Africa’s power utility Eskom on Friday increased its wage offer to unionised workers, trying to head off a strike that could cut power to Africa’s largest economy.
Hundreds of thousands of union workers have walked off the job in recent weeks, or are threatening to do so, seeking raises double or triple the current 5 percent inflation rate in the mid-year bargaining session known locally as “strike season”.
The strikes typically last up to a few weeks, slowing down production but causing minimal damage to the overall economy.
Prolonged work stoppages that stretch into late August or power cuts at Eskom could put the brakes on growth for an economy inching out of the global slowdown.
The National Union of Mineworkers (NUM), which represents about 40 percent of the workers at Eskom, said the utility had increased its pay offer to 7 percent from 5.5 percent. The union is demanding 16 percent.
“Next week there will be no talks. We will meet the week after to take the discussion forward,” NUM spokesman Lesiba Seshoka said. Eskom confirmed the offer.
State owned Eskom has faced political pressure to give in to workers from the ruling African National Congress, which is in an alliance with organised labour and wants to appease the ally that has supplied it with millions of votes.
But if Eskom gives into NUM demands, it would mean wage and benefit increases of more than 35 percent over two years for its workers. Electricity workers already make an average of US$3,800 a month in wages and benefits, more than double the average non farm salary, according to government data.
