JOHANNESBURG, April 17 – State-owned utility Eskom is set to sign a three-year wage agreement with the majority of its workforce, securing above-inflation pay increases and reducing the risk of widespread labour disruption.
The National Union of Mineworkers (NUM) and Solidarity, which together represent more than 75% of Eskom employees, confirmed they will sign the deal for a 7% annual wage increase through 2029. Union leaders said the agreement reflects a clear mandate from their members after months of negotiations.
The increase is more than double the current inflation rate, with the South African Reserve Bank projecting consumer-price growth to remain below 4% over the next three years. This positions the deal as a real wage gain for workers.
However, the National Union of Metalworkers of South Africa (NUMSA) has rejected the offer, demanding an 8% increase in the first year. The union has declared a deadlock, raising the possibility of arbitration or industrial action.
Despite this, the agreement with the majority of workers is a significant boost for Eskom, which only recently stabilised electricity supply after years of severe power outages that weighed heavily on South Africa’s economy.
Labour tensions remain, particularly over Eskom’s restructuring strategy to split the utility into separate business units. NUM members have already signalled plans to protest the move, highlighting ongoing friction between management and parts of the workforce.
Still, securing buy-in from most unions marks a critical step toward operational stability, even as unresolved disputes continue to pose a risk to longer-term reform efforts.
