South Africa News

Eskom denies retrenchments

Eskom says it has no retrenchment plans.

The cash-strapped utility has been locked in wage negotiations with trade unions for over a month.

It initially said it couldn’t afford any wage increases but has since made a U-turn, putting two offers on the table.

But with the company having to find the money itself, workers are concerned about losing their jobs.

According to Eskom’s 2017 annual report, the power utility has a workforce of over 47,000.

As part of cost-cutting measures, the report says it plans to reduce its employees to 36,000 by 2022.

However, the parastatal says this is not the plan anymore.

“That is the strategy of the old board, the new management feels we can work with numbers we have,” said spokesperson Khulu Phasiwe.

Eskom

“The question around retrenchments does not come in at this stage. We are pursuing companies and individuals that owe us.

“We have received over R900-million from Mckinsey we are pursuing Trillian and municipalities that owe us R14-billion,” he said.

A World Bank policy research paper found that in 2014, the country’s power utility had the largest workforce out of 39 countries.

It estimates that Eskom only needs a workforce of just over 14,000.

Meanwhile, Public Enterprises Minister Pravin Gordhan says lifestyle audits by the SIU on the power utility’s executives are under way and will be completed by March 2019.

The audits will date back to 2009, starting with board members and those implicated in corruption.

Experts say staff levels too high and unaffordable.

The company has been in a financial crisis for years‚ following rampant corruption and being implicated in state capture.

It’s in debt to the tune of more than R350-billion and is seen as a risk to the country’s economy.

Eskom is due to release its latest financial report next week.

Source: Timeslive