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30 August 2018

South Africa: NUM Signed a Three-Year Wage Agreement With Eskom

Photo: EskomSouthAfrica
Eskom Megawatt Park.
press release

The National Union of Mineworkers (NUM) has signed a three-year wage agreement with Eskom in the early hours of this morning.

The agreement shall apply from 1 July 2018 to 30 June 2021 to all permanent employees employed in the Bargaining Unit at Eskom

The provisions of the wage agreement also include, among others, the following adjustments:

1. Wage increase

Year one 7,5%

Year two 7%

Year three 7%

2. Housing Allowance

Housing allowance will be increased by CPI for each year of the wage agreement

A once-off cash payment of R10 000 after tax for all employees in the Bargaining Forum at Eskom to be made within 48 hours of the signing.

The unions and Eskom agreed that the review of the current Short-Term Incentive Scheme will be referred for further engagement at the Central Consultative Forum (CCF).

The conditions of service will remain unchanged for the period 1 July 2018 to 30 June 2021.

The 2018 Eskom wage negotiations has been the most difficult ever in the history of the NUM. This was caused by the Eskom approach to the wage negotiations when they tabled a 0% wage offer in the beginning of this wage negotiations. That was a clear provocation to our members. Eskom Board Chairperson Jabu Mabuza even admitted that the 0% wage offer was a tactical error. The NUM is also worried that the industrial relations between Eskom and the trade unions is not good under the current Eskom leadership. We hope that the industrial relations between the parties will improve and bring stability that is necessary at the power utility. We truly thank our disciplined members who are the owners of this revolutionary giant union for giving us a mandate to sign this wage agreement today.

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