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Eskom presented a 7% salary increase across the board for its employees

Jul 15 '16 | By La Afrique Media | Views: 308 | Comments: 0

Eskom has presented a 7% salary increase across the board for its employees as wage negotiations continue at the power utility.

Giving an update on wage negotiations with its three recognised trade unions, the National Union of Metalworkers of South Africa (NUMSA), the National Union of Mineworkers (NUM) and Solidarity, Eskom said the 7% increase is its final offer.

Wage negotiations with the unions commenced in May 2016.

“The trade unions tabled a range of demands on the increase in basic salary ranging between 9.5% and 20%. Demands around the improvement of current employee benefits and the introduction of new benefits implied an increase in the total cost of employment of between 10% and 35%.

“In terms of the Eskom Conditions of Service, Bargaining Unit employee salary increases are due for implementation annually on 1 July. During the nine days of negotiations, the unions made limited adjustments to any of the demands tabled,” said Eskom on Friday.

Eskom on 22 June 2016 tabled a final salary offer of 7% across the board increase for all employees.

A further increase was tabled based on a sliding scale ranging between 0 and 2% for employees in the lower half of the salary scale. The implication is that employees will receive a salary increase ranging between 7% and 9% if the Eskom offer is implemented.

“The implication being that 44% of bargaining unit employees will receive an increase of between 8% and 9%. The offer also includes an adjustment of 5.6% to key allowances impacting on the operational side of the business,” explained the utility.

The third round of negotiations which was planned to be the last one was held this week after which the unions requested time to engage their respective membership and revert back to Eskom.

A final round of negotiations has therefore been scheduled for 13 - 15 July 2016.

The power utility said it remains committed to engaging organised labour in terms of the existing agreements on matters pertaining to bargaining unit employees and their conditions of service as well as transformation.

“Eskom has always been open and transparent on the issue of executive remuneration and bonuses, and there will not be any exception on this matter for the past financial year. Further details on this will be provided in the 2016 annual financial results which will be announced in July,” it said.

In recent discussions on the payment of performance bonuses for the previous financial year, it was raised that there is a perception that black women are paid less than their counterparts.

“Statistics from the latest report by Eskom’s Employment Equity Committees seem to point to the fact that black women are indeed rated lower than their counterparts during performance appraisal cycles. As a collective, management and organised labour are required to come up with interventions to eradicate these barriers.”

The utility expressed its commitment to the advancement of women, especially black women.

“We stand by this commitment and we have repeatedly placed sufficient evidence on record to demonstrate the role Eskom is playing in the advancement of designated groups and black women in particular,” it said. – SAnews.gov.za

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