Eskom has concluded a three-year wage agreement that will see workers receive a 7% annual salary increase, significantly above South Africa’s current wage growth trends, while consumers continue to grapple with escalating electricity costs.
The power utility announced on Friday that signatory unions representing more than 75% of employees in the Central Bargaining Forum have agreed to the deal, which takes effect from 1 July.
The agreement is binding on all employees within the bargaining unit, including those affiliated with the National Union of Metalworkers of South Africa, which has declared a deadlock and opted not to sign.
The 7% annual increase stands notably higher than South Africa’s minimum wage increase of 5%, which took effect in March.
Eskom Group Chief Executive Dan Marokane said the conclusion of the wage process represents an important procedural milestone, providing the stability and predictability required to focus on delivering business objectives.
“We recognise that our people are central to driving sustainable growth and to building an organisation that is resilient and attractive to future partners and investors,” Marokane said.
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The wage agreement comes as South Africans face mounting financial pressure from electricity price increases approved by the National Energy Regulator of South Africa. Eskom’s tariffs increased by 8,76% for direct customers from 1 April, whilst municipal customers face an average increase of 9,01% from July.
The electricity price hikes, which took effect weeks before the wage agreement was announced, have added to affordability pressures for households and businesses already struggling with rising living costs.
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By maintaining a three-year framework, Eskom and organised labour have established a predictable environment that reduces the volatility associated with annual bargaining cycles. The agreement continues Eskom’s established practice of multi-year collective bargaining arrangements, supporting cost predictability and operational stability.
The power utility said the multi-year framework secures the labour stability and skills necessary to maintain and reinforce Eskom’s recent gains in overall system performance.
Eskom said it remains committed to structured and ongoing engagement with all three of its recognised trade unions on all other matters of mutual importance.
The wage process has been concluded in line with applicable Central Bargaining Forum processes and labour legislation.
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