Eskom cuts 2 000 jobs in attempt to reduce bloated salary bill

Eskom cuts 2 000 jobs in attempt to reduce bloated salary bill

- Eskom has opted to shed 2 000 jobs over the course of the past year in a bid to reduce its bloated salary bill

- Expectations are high that this is just the beginning of the embattled power utilities clamp down on unnecessary staff

- Despite letting thousands go, Eskom remains overstaffed according to its CEO

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Eskom has reduced its workforce by around 2 000 over the past year in an effort to slim down its bloated salary bill.

Despite the reduction, Eskom remains overstaffed according to its CEO Andre de Ruyter, who says 6 000 fewer employees would be ideal.

De Ruyter revealed this in a panel hosted by the Free Market Foundation during which he explained that the utility has 44 000 employees when instead it should have 38 000.

Eskom to pull the plug, 2000 jobs, Eskom to pull the plug, 2000 job
De Ruyter has confirmed that 2 000 jobs have been cut at the state-owned entity. Image: Dwayne Senior/Bloomberg
Source: Getty Images

The CEO remained silent on whether or not Eskom intends on reducing its workforce to this point, instead explaining that the reduction had taken place by retirement and voluntary severance packages.

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He had used the platform to clarify that top officials at the power utility had received pay increments and even bonuses at a time when the state-owned utility's finances were in a questionable state.

The CEO further commented that the maintenance programme was increasing the risk of load-shedding, with this risk expected to be reduced later this year.

The power utility acknowledged a report by the Koeberg Alert Alliance which had exposed structural damage at the plant.

The building which is home to the station's nuclear reactor has allegedly been substantially damaged with the utility confirming that an investigation is ongoing.

The plant is nearing the end of its lifespan with maintenance issues set to become increasingly frequent.

The CEO raised concerns over the amount of debt owed to Eskom with municipalities owing it R36 billion.

Earlier, Briefly.co.za reported that consumers have been warned to brace themselves for a hike in electricity tariffs after energy regulator Nersa allowed Eskom to recover R6 billion.

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This had followed the court order prompting Nersa to review its previous decisions on the matter.

The fees are in connection to a price structure application made by the power utility for the 2014 to 2017 financial years.

Nersa had previously awarded Eskom a total of R32.6 billion for recovery but the recent order has seen Nersa allowing for a further R6 billion.

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Source: Briefly News

Authors:
Samantha Riddle avatar

Samantha Riddle Samantha Riddle is a former Mainstream/ Current Affairs Manager. She covered the breaking stories and SA news from 2018-2021. Currently, she’s working for The South African.