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Unions Fear SA Electric Merger Migh Mean Job Cuts

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10 September, 2005

In South Africa, a statement was released by a coalition of trade unions, including ICEM affiliates NUM and National Union of Metalworkers of South Africa (NUMSA), expressing serious concern about possible job losses after the merger of the 7 power distribution business units of Eskom and those of the municipalities, consisting of 187 licensed municipal distributors. According to an industry restructuring document, about 1,000 jobs could be lost a year. The report contradicts statements by the Electricity Distribution Holdings (EDI), the state-owned company set up to reform the sector, which said that no jobs would be lost during the restructuring.