Certainty about wage increases helps Eskom manage cost better. The utility aims to save R112 billion over five years, it said on Friday.
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Eskom has sealed a wage deal with unions representing about 75% of its employees for 7% increases over each of the next three years.
The utility announced the agreement with Solidarity and the National Union of Mineworkers (NUM) on Friday. The agreement is binding on all employees within the bargaining unit, including those affiliated with the National Union of Metalworkers of South Africa (Numsa), despite Numsa still insisting on an 8% increase for 2026.
The increase, which applies from 1 July, is more than double the current inflation rate of 3%, which is, however, expected to increase over the course of 2026 following the fuel price surge. According to the SA Reserve Bank, inflation should remain below 4% for the foreseeable future.
In a statement, Eskom CEO Dan Marokane said: “The conclusion of the wage process represents an important procedural milestone. It provides Eskom with the stability and predictability required to focus fully on delivering our business objectives and fulfilling our mandate to South Africa.
“Most importantly, this agreement allows our people to remain focused on execution, accountability and consistent delivery, as well as enabling us to attract future talent to the organisation. The agreement reinforces Eskom’s disciplined approach to cost management and operational efficiency.”
Eskom’s cost optimisation and revenue enhancement programme is targeting R112 billion in cost savings over five years, according to Eskom’s Chief People Officer, Candice Hartley.
Eskom acknowledged that Numsa had declared a deadlock and opted not to sign the current agreement.
Despite signing the agreement, unions remain opposed to Eskom’s separation into four units. The NUM is planning a protest against this on Saturday, according to a statement.
