South African unions dropped on Sunday a threat to strike at power utility Eskom this week after receiving a higher wage offer, ending concerns about electricity supplies during the Soccer World Cup.
Widespread power cuts could also have dented manufacturing and mining companies’ output in Africa’s biggest economy, the world’s top platinum and fourth-largest gold producer.
For the first time the unions conceded that a stoppage at Eskom would have been illegal under current laws, which prevent workers at the state-owned company from striking because they provide an essential service.
The decision was taken jointly by officials of the National Union of Metalworkers of South Africa (Numsa) and the National Union of Mineworkers (NUM), the biggest union at Eskom with about half of the 32Â 000 staff.
The Numsa and NUM said they felt Eskom’s offer of a 9% pay rise was the best they could get, and both resolved not to support any strike action.
“We think that it is a very serious offer and ask our members to seriously review it. We are not in a position to support an illegal strike by workers,” Irvin Jim, the general secretary for the Numsa, told a media briefing.
“We therefore urge our members in light of the new offer not to engage in any unprotected strike action.”
Eskom had warned that it would punish workers if they went ahead with their strike action.
Had the strike happened, there was a likelihood of blackouts which would have embarrassed the country and angered fans during the World Cup, which ends on July 11. Stadiums are equipped with their own power generators but millions of fans watching from home on TV could have been affected.
Numsa has about 7Â 500 members at the utility, similar to a third union, Solidarity, which had asked Eskom to revise its offer by Monday before deciding whether to join a strike.
According to the unions, Eskom raised its pay offer to 9% from 8,5%, nearly double the inflation rate of 4,6%, and said it would pay a R1Â 500 per month housing allowance, up from its previous offer of R1Â 000.
The unions had wanted a 9% wage rise and a housing allowance of R2Â 500.
They vowed to lobby for a change to the law which describes all Eskom staff, including cleaners and security guards, as essential workers to ensure their right to strike is not curbed.
Last year the unions called off a planned strike at Eskom at the last minute after accepting a pay deal.
Eskom was not available for a comment but signed a joint statement with the conciliator and unions agreeing to the new terms.
Solidarity spokesperson Dirk Hermann said the union would also ask its members to accept the offer. “We are optimistic that a final agreement should be reached this week,” Hermann said.
New era
Hermann said Solidarity was “relieved” that a settlement had been reached around the negotiating table because this was “the best for South Africa, the workers and Eskom”.
“We hope this settlement paves the way for a new era of labour relations at Eskom,” he said, adding that the whole negotiating process had been under pressure because of the bad state of labour relations in Eskom and huge levels of frustration of workers.
“Eskom’s challenge now will be to resolve this underlying frustration. “We believe this settlement is the first step in resolving underlying tensions and frustrations in Eskom.” Last week, the CCMA issued a certificate of non-resolution when the talks deadlocked after several conciliation meetings. Eskom members planned to strike from Monday.
The NUM and Numsa said on Sunday that they would continue engaging Eskom to conclude a minimum service level agreement.
“As we speak, all workers at Eskom are regarded as essential, from a security to a cleaner,” said Numsa secretary general Irvin Jim.
A service level agreement would give workers the right to strike, he said.
A bleeding company
The NUM and Numsa also spoke out against Eskom’s spending of R12-million on World Cup tickets.
“A bleeding company must be seen acting in a particular way,” said Baleni, adding that this was especially so when a wage offer was being made.
Vavi said the tickets were shared among executives, who could afford to buy them given their “massive salaries and bonuses” and not ordinary workers.
Meanwhile the African National Congress welcomed the resolution, calling it a “ground breaking conclusion”.
“…These wage negotiations between Eskom and the unions, under the stewardship of the workers federation, Cosatu, clearly illustrates that all the parties involved are unquestionably patriotic and supportive to South Africa’s current hosting of the 2010 Fifa World Cup,” spokesperson Jackson Mthembu said.
“The ANC hails this decision as progressive and selfless on the part of both the employer and the trade unions.
“But, most importantly, the amicable conclusion of these negotiations are in the best interest of our country, South Africa, our visitors and our guests at this point in time of our history.” – Sapa, Reuters