Eskom and Trade Union Wage Agreement Signed – A Good Message for REIPPP

  • The announcement comes after prolonged and robust negotiations.
  • Coal will still make up 65% of energy production leading up to 2030.
  • The conclusion of the wage agreement will go a long way in restoring investor confidence in the South African Energy Sector.

Eskom and trade unions National Union of Mineworkers (NUM), National Union of Metalworkers of South Africa (Numsa) and Solidarity signed the wage agreement in the early hours of this morning following talks.

In terms of the three-year agreement on wages and conditions of employment, Eskom’s bargaining unit employees will see a salary adjustments of 7.5% in 2018/19 (effective as of July 2018), 7% in 2019/20 and 7% in 2020/21, an annual cost of living (CPI) adjustment to their housing allowance as well as a one-off cash payment of R10,000 after tax to be paid within 48 hours of the agreement being signed.

“Eskom wishes to thank all the parties involved in the negotiation process for their endeavour to find an amicable solution. The conclusion of these negotiations enables us to firmly focus on the Eskom of the future and building a sustainable business to power the nation and grow the economy,” Eskom Group Executive for Human Resources Elsie Pule said.

The announcement comes after prolonged and robust negotiations where the threat of job losses in the coal-fired power industry to renewable energy production was a major focal point. The release of the country’s new Integrated Resource Plan reveals a balance approached to both coal and renewable energy production in relation to job preservation. Coal will still make up 65% of energy production leading up to 2030. Two new coal-fired stations totalling 1000Mw will be commissioned while some ageing stations will be decommissioned.

Total installed capacity for each technology will be:

  • Hydro – 4696Mw
  • Coal – 34000 Mw
  • Nuclear – 1860 Mw
  • Solar Pv – 7958 Mw
  • Wind – 11442 Mw
  • Pump storage – 2912 Mw
  • Gas – 11930 Mw
  • Concentrated solar – 600 Mw

While the public comment period on the new IRP is still to be concluded, the sensitivity regarding the prosperity and underlying socio-economic impact from all production technologies revealed in the new IRP seems to have resonated with stakeholders for now.

The conclusion of the wage agreement will go a long way in restoring investor confidence in the South African Energy Sector. The announcement also bodes well for the resumption of the country’s Renewable Energy Program (REIPPP).

DESK: Green Building Africa

Leave A Reply

About Author

Green Building Africa promotes the need for net carbon zero buildings and cities in Africa. We are fiercely independent and encourage outlying thinkers to contribute to the #netcarbonzero movement. Climate change is upon us and now is the time to react in a more diverse and broader approach to sustainability in the built environment. We challenge architects, property developers, urban planners, renewable energy professionals and green building specialists. We also challenge the funding houses and regulators and the role they play in facilitating investment into green projects. Lastly, we explore and investigate new technology and real-time data to speed up the journey in realising a net carbon zero environment for our children.

Receive the week’s most popular stories in your inbox every Saturday morning