Eskom managers demand salary increases to the tune of R300 million
- Eskom's senior management is demanding a 4.7% pay increase
- This would reportedly cost the power utility between R200 million and R300 million a year
- After Eskom's R20 billion loss this year, these are funds the SOE does not have
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Senior managers at Eskom are reportedly taking the power utility to the Commission for Conciliation, Mediation and Arbitration (CCMA) to demand a salary increase of 4.7%.
These managers say they received no salary increase in the last financial year, while middle management did.
Eskom's senior management is made up of between 180 and 200 managers, all of whom earn between R1.5 million and R3 million a year.
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The power utility has warned that its senior management may go on strike if their demands are not met. If Eskom gives in and grants them the increase they're asking for it will cost the SOE between R200 million and R300 million, according to News24.
However, senior management is not the only group of Eskom employees who are unhappy with their pay. Middle management, who received a 4.7% salary increase this year, are upset that that Eskom's bargaining unit got a 7.5% increase.
Additionally, Eskom's 13 most senior executives received total bonuses of R44 million this year, which may be adding to employees' frustration.
At this point, however, it is not clear how the issue will turn out. Last year, the CCMA ruled in favour of the Eskom employees, but Eskom has taken the matter on review. If the workers win their case, these salary increases would place significantly more financial strain on the power utility.
READ ALSO: Eskom looking to increase tariffs by 80 percent to recoup finances
Some experts have suggested that the only way to offset the salary increase would be to lay off many workers, but Cyril Ramaphosa has promised that there will be no retrenchments at Eskom.
This leaves the power utility with few options. Eskom is already in serious debt and losing money. Indeed, the entity recorded a R20.7 billion loss for the 2018/19 financial year, Briefly.co.za has gathered.
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Source: Briefly News
