A protracted wage struggle appears to be looming between South Africa’s cash-strapped state-owned entities (SOEs), with unions demanding 10 times more than Eskom is offering, while legal action is being taken against the Passenger Rail Agency of South Africa (Prasa) for failing to pay agreed wage increases.
The National Union of Metalworkers of SA (Numsa) and the National Union of Mineworkers (NUM) had demanded a 15% wage increase while Solidarity requested a lower 9.5%. This is a far cry from Eskom’s offered 1.5% increase with adjusted benefits.
The utility has described the unions’ demands as unaffordable.
Trade unions engagement with power utility Eskom on wages continues with a press conference to be co-hosted by NUM and NUMSA scheduled to take place at 2pm #NUM #CollectiveBargaining #LivingWage #NoRetreatNoSurrender @SABCNews @eNCA @Newzroom405 pic.twitter.com/ae5Ty7THhN
— NUM (@NUM_Media) May 20, 2021
Eskom being arrogant
Numsa has started mobilising its members to protest and demonstrate as their wage negotiations with Eskom approach a deadlock.
The unions believe the power utility’s management is being “arrogant” and “dismissive” during engagements with them. In a joint media briefing on Thursday, Numsa, and NUM said the group chief executive officer (CEO) earned 80% more than the lowest earner.
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“We reject this with the contempt it deserves. We are also demanding an increase in housing allowance and the closing of the apartheid wage gap. We demand an increase in maternity leave from five months and seven days to six months and other improvements on conditions of service. We are also demanding that the Eskom recognition agreement must be aligned to the Labour Relations Act,” said the unions during their joint briefing.
Numsa general secretary Irvin Jim said they would be going back to mobilise their members.
“We will be going back to members. We will be mobilising workers now for protests and demonstrations. We will not be responsible for what workers do in those particular demonstrations and protests,” he said.
While Eskom seemed resolute in their offer, spokesperson Sikhonathi Mantshantsha said wage talks were still ongoing.
Prasa’s unpaid 5% wage increase
The United National Transport Union (UNTU) on the other hand have instructed their lawyers to file an urgent application with the Labour Court against Prasa for a 5% wage increase which was agreed upon, but on which the rail agency has seemingly reneged.
In terms of the multi-term wage agreement, the rail agency was meant to implement the wage increases at the end of April 2021 but failed to do so.
According to the union’s general secretary Steve Harris, Prasa CEO Zolani Matthews pleaded for time to sort out the challenges with the Department of Transport and National Treasury.
“When UNTU signed the multi-term wage agreement, the union waived the rights of its members to embark on industrial action. Prasa was adamant to secure a multi-term agreement to ensure a stable working environment. In return, Prasa committed itself to no retrenchments during the period.”
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“UNTU will leave no stone unturned to ensure that Prasa employees get the increase that is due to them,” Harris said.
Prasa spokesperson Bane Ndlovu told The Citizen that the rail agency was not aware of the wage squabble.
“This is new to us… Our queries [about this] are with the group human resource executive to give feedback on what is happening,” he said.
Wage increases a selfish demand during economic crisis
During a time of economic crisis and the country being graded junk status, only selfish and greedy people would make such demands under these circumstances, economist Professor Bonke Dumisa said.
He said unions like Numsa were only pushing a certain agenda to display “how radical they are”.
“You won’t see this in the private sector because they know the economic rule that you only pay salary increases from the profits. If you don’t make profits, you can’t pay salaries.”
“They are selfish. How do you say that, when the economy is busy trying to come out of a junk status, and we are not yet out of Covid and businesses are still struggling? They are saying that the little money tat is there must be used for them yet they are the ones who complain about the rise in unemployment rate.”