South Africa’s power utility, Eskom, has tabled a revised wage offer of 6.5% for workers as negotiations with labour unions enter a fourth round, with no agreement reached.
The proposal forms part of a three-year deal covering 2026 to 2028, with increases of 6.5% in the first two years and 6% in the final year.
The offer also includes adjustments to housing allowances and funeral benefits. Three recognised unions are party to the talks, including the National Union of Mineworkers, which represents approximately 15,000 Eskom employees.
“The state-owned power utility tabled a three-year deal that include a basic salary increase of 6.5% in July, another 6.5% next year and 6% in 2028,” the source read in part.
The current wage agreement is set to expire in June, adding urgency to the ongoing discussions.
Eskom confirmed that its latest proposal was formally presented during the fourth round of negotiations.
“The offer was indeed tabled during round 4 of salary negotiations with the three recognized trade unions,” an Eskom spokesperson said.
However, labour groups have maintained their position. NUM had initially demanded a 15% increase when talks began in October before revising its request to 12%.
The union, alongside the National Union of Metalworkers of South Africa, had earlier rejected a 6% increase offered by Eskom in the previous round.
This leaves a notable gap between both parties, with no agreement yet reached as negotiations continue.
Workers cite improved performance
Union demands come amid recent operational improvements at Eskom, following a period marked by severe electricity shortages across South Africa.
The country experienced prolonged power cuts in recent years due to breakdowns at ageing plants and maintenance backlogs, with Eskom workers central to stabilisation efforts during that period.
Labour representatives have argued that employees contributed directly to improved generation performance and should be compensated accordingly.
Meanwhile, Eskom has acknowledged some operational progress but continues to flag financial constraints. The utility has faced significant debt obligations and relies on government support to maintain operations.
The gap between the unions’ wage demands and Eskom’s stated financial position remains a central issue in the talks.
What you should know
Eskom is South Africa’s primary electricity provider, supplying the majority of the country’s power, with its operations closely tied to economic activity across industries and households.
The National Union of Mineworkers is one of the largest unions within Eskom and has historically played a significant role in wage negotiations at the utility.
In 2023, unions secured a 7% annual wage increase over three years, despite Eskom citing financial pressure, with that agreement reached during one of the most severe periods of electricity outages in the country.
The current negotiations follow a similar pattern, with unions rejecting initial offers and pushing for higher adjustments before a deal is reached.
The outcome of the current talks will determine the wage structure for the next three years, ahead of the expiry of the existing agreement in June.
