South African labour unions will sign a three-year wage deal with state-owned power utility Eskom for above-inflation increases on Friday, according to two of the groups.
Solidarity and the National Union of Mineworkers will sign the deal for 7% annual wage hikes to 2029, according to Solidarity General Secretary Gideon du Plessis. Together, the groups represent more than 75% of the utility’s workforce.
“We are signing,” said Khangela Baloyi, NUM’s energy sector coordinator.
The National Union of Metalworkers of South Africa has declared a deadlock as members want an 8% increase in the first year, Reuters reported on Thursday. Numsa General-Secretary Irvin Jim didn’t answer a call or message seeking comment.
The 7% increase is more than double the current inflation rate and will continue to exceed that. South Africa’s central bank projects average annual consumer-price growth will be below 4% for the next three years.
Still, the negotiations concluded with the majority of Eskom’s workforce is a welcome development for the utility that last year stabilized the grid after years of debilitating blackouts that crimped the economy. The company has encountered resistance from some labor groups over its ongoing strategy to split the business into separate units. Members of the NUM are planning a protest against this on Saturday, the group said in a statement on Thursday.
Eskom started wage talks about six months ago, far ahead of the expiration of its current wage agreement that’s set to expire in June. Previous talks resulted in strikes and protests before they were concluded.
