Africa Energy Indaba

Eskom to Implement Executive Structure Retrenchment Process

  • Eskom has announced that the Board has approved a Section 189 process for its executive structure (F-Bands).
  • Only members of the executive structure will be impacted.
  • Section 189 of the Labour Relations Act (“LRA”) permits employers to dismiss employees for operational requirements.

In a brief statement issued this afternoon, Eskom has announced that the Board has approved a Section 189 process for its executive structure (F-Bands). Despite efforts to curb expenditure, Eskom’s operating costs have continued to increase dramatically while output has remained largely unchanged.

As a result, Eskom’s Board of Directors has decided to review the company’s organisational design to enhance operational and cost efficiencies. Only members of the executive structure will be impacted. Eskom will share the updates with the relevant stakeholders as appropriate.

Section 189 of the Labour Relations Act (“LRA”) permits employers to dismiss employees for operational requirements. These are defined as requirements based on economic, technological, structural or similar needs of the employer.

Author: Bryan Groenendaal

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