20100705
allafrica

Johannesburg — ESKOM and three trade unions struck an 11th hour wage deal yesterday, averting a strike at the power utility and preventing possible electricity blackouts in the final week of the World Cup.

The deal, in which the government played an "informal" role, raises the bar, however, for public-sector wage increases and could put the government in a tight spot as public-sector pay negotiations are still to be concluded.

Yesterday the National Union of Mineworkers (NUM) and National Union of Metalworkers of SA (Numsa) said they had accepted a 9% wage increase and a R1500 monthly housing allowance and they would be able to "successfully sell the offer" to their members.

The deal follows the two unions last week issuing strike notices to Eskom, which has a funding shortfall on its expansion programme.

Consumer inflation is at 4,6%. The above-inflation increases go against a plea from Finance Minister Pravin Gordhan for the state's salary bill to be reined in this year.

Mr Gordhan said in his budget speech in February that after last year it was "necessary to moderate salary increases going forward".

Yesterday public-sector unions said they would discuss options after wage negotiations deadlocked last month and a dispute was declared.

Last week the Commission for Conciliation, Mediation and Arbitration (CCMA) issued a certificate declaring the matter unresolved. State employees' trade unions are demanding an 8,5% increase plus a R1560 a month housing allowance.

In May Transnet agreed to an 11% across the board hike and an additional 1% for the lowest-paid workers after a strike at the transport and logistics parastatal.

Eskom initially offered workers an 8,5% wage increase and a R1000 housing allowance which the NUM, Numsa and Solidarity rejected last week.

NUM spokesman Lesiba Seshoka said yesterday the housing allowance would be a good start for workers who had not been entitled to it before.

The settlement reached yesterday at talks brokered by the CCMA was hailed as an achievement that would save SA and Eskom from embarrassment over potential power outages at the World Cup. "We hope this settlement paves the way for a new era of labour relations at Eskom," said Solidarity's deputy secretary-general, Dirk Hermann.

The African National Congress described the deal as "groundbreaking, progressive and selfless". Congress of South African Trade Unions general secretary Zwelinzima Vavi said the federation would campaign for the pay gap between executives and workers to be narrowed.

He said he was disturbed by reports that Eskom's executive managers had received salary increases of between 73% and 91% and that Eskom had spent R12m on World Cup tickets. He described buying the tickets as a "selfish" way of spending money and urged managers not to accept huge salaries and bonuses again because their actions were "an insult" to workers.

NUM general secretary Frans Baleni said while the unions accepted the revised offer, they were concerned by the absence of a minimum service level agreement with Eskom.

"We call on the utility to ensure that the conclusion of such agreement is prioritised and concluded immediately," he said.

But Sandile July, a labour expert and director at Werksmans Attorneys, said it was unlikely Eskom would agree to a minimum service level agreement. "It is in the interest of Eskom not to have it, it suits them and it would be unwise for them to agree on it because they are an essential service industry," he said.

Eskom did not comment yesterday, but signed a joint statement with the CCMA and unions agreeing to the new terms.