Read this article in:
12 July, 2010
Following three days of intense negotiations, 2-4 July, South African state-owned electric utility provider Eskom and three trade unions won 2010 wage terms with increases of 9%, plus long-awaited housing allowances. With the threat of a strike looming during the final week of the World Cup – despite a labour court ruling now on appeal that deemed the entirety of Eskom an essential service – the company met the unions wage demands in talks before the nation’s Commission for Conciliation, Mediation, and Arbitration (CCMA).
The ICEM affiliated unions National Union of Mineworkers (NUM), National Union of Metalworkers of South Africa (NUMSA), and a third union, representing a combined 28,000 workers, are expected to sign the agreement this week, with the across-the board salary increase backdated to 1 June.
A major issue throughout bargaining was the housing allowance. In that, a compromise was reached in which workers will receive a R1,500 (US$194) monthly allowance. Entering early July’s final mediated bargaining session before workers were prepared to strike, Eskom had an 8.5% wage offer and a R1,000 housing stipend on the table. The unions had demanded R2,500 for housing.
The housing allowance issue was a carry over from last year’s bargaining, when Eskom promised to establish a commission by year’s end to award a first-ever stipend for staff who work away from home. That never materialized.
Labour unions and management are expected to decide this week when the R1,500 allowance will take effect, with unions arguing it should be backdated. Also this week, talks will continue towards reaching a minimum service agreement, an accord that will determine which Eskom employees are not essential state workers and thus have the right to strike. The unions also have this matter before a labour appeals court.
The NUM represents 16,000 workers at Eskom, while NUMSA represents about 5,000.