Eskom brings 5.5% increase offer to wage talks
Eskom has raised its salary increase offer to trade unions to 5.5% from the 3.5% it proposed last year, a document seen by Reuters showed, though it remains well below what unions are demanding.
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Eskom has been a long-term drag on Africa's biggest economy through its electricity cuts and financial woes.
But a sharp improvement in the performance of its coal-fired power stations has allowed it to stop implementing nationwide blackouts.
It reported its first full-year profit in eight years last financial year.
The revised wage offer was presented to the three major unions it negotiates with over salaries this week in a second round of pay talks.
Eskom proposed that the 5.5% pay increase come into effect on 1 July, the day after its current three-year wage deal expires, the document showed.
The offer includes adjustments to other benefits, such as housing.
An Eskom spokesperson confirmed the utility's latest salary offer was 5.5%.
Unions are seeking pay hikes of up to 15%, far above South Africa's annual inflation rate, which stood at 3.6% in December and which the central bank thinks may have peaked.
A third round of wage negotiations is scheduled for February, said Khangela Baloyi, energy sector coordinator for the National Union of Mineworkers.
Eskom's 2023 three-year agreement saw non-managerial employees' salaries increase by 7% each year.
The former state monopoly still generates the bulk of South Africa's electricity and would like to agree on another multi-year wage deal.
Unions have gone on strike during previous wage disputes, triggering power blackouts.
This time around, the potential impact of a strike on Eskom's operations is harder to gauge as the recent improvement in its generation fleet means it has excess capacity.