Eskom must dig deeper, says Pravin Gordhan

Eskom has been locked in wage negotiations with three trade unions for over a month now.

Public Enterprises Minister Pravin Gordhan says it’s up to the Eskom board to find the money for wage increases.

Eskom employees must decide if they will accept a three-year agreement that includes a 7 percent annual increase and a housing allowance, or 7.5 percent for 2018 and 7 percent for the two years after, with no housing allowance.

Unions are not backing down on bonuses, which Eskom says will be discussed at a Central Consultative Forum.

Gordhan said wage increases will not be funded by the public purse.

“Negotiations take place from mandates from boards. The Finance Minister doesn’t come into it, because he is not going to give anybody any money,” said Gordhan.

“He has made his position clear: the country doesn’t have money, and we are trying to avoid bailouts.”

So where will the money for wage increases come from?

“The boards and managements of institutions like Eskom must cut somewhere — on capital investment or operating cost — to fit the bill agreed on,” he said.

“There is no fat lying around, unfortunately.”

The threat of load-shedding hangs over households and businesses until a deal is reached.

Negotiations are set to resume next week.

Gordhan said workers need to work with government and not against it in order to save state-owned enterprises and make them financially viable again.

Source: eNCA