NUMSA PRESS STATEMENT | ESKOM WAGE NEGOTIATIONS

The National Union of Metal Workers of South Africa (NUMSA) wants to inform the public and all its members at Eskom, that as a union we have been left with no option but to declare a deadlock with Eskom in the current ongoing wage negotiations. We are going public in rejecting the current offer on the table which NUMSA regards as a sham and openly undermining the collective bargaining process, we hold a very strong view that Eskom is embarking on broad daylight robbery of hard-working Eskom workers. What is even more provoking to NUMSA is the fact that Eskom has decided to make an offer that is short-changing workers when it was Eskom who requested to start these rounds of negotiations six months earlier (October 2025) instead of April 2026 in line with recognition agreement.

As NUMSA, we were initially reluctant to concede to such a request, but we finally agreed as it was our view that Eskom’s willingness to start negotiations earlier was a clear indication that Eskom was ready to make a meaningful offer. In light of the fact that their financial position is stronger compared to 2018, 2021, 2022 and 2023. The remarkable turnaround of Eskom’s financial position was confirmed not only in the disclosure of information which was sent to unions in November 2025 but also in the presentations made during wage negotiations.

Therefore, NUMSA regards the current offer on the table of 7% in year one, year two and year three of the agreement as unacceptable. The union finds this intransigent position adopted by Eskom as provocative and a sham as Eskom’s budget indicates that in fact they have budgeted for a 9% increase for salaries for bargaining unit workers which is inline with what the union has been demanding. In essence, if Eskom were to give the increase according to their budget, Eskom workers should be getting 9% in the first year.

NUMSA is extremely dismayed by this unfair position adopted by Eskom against workers. This is despite Eskom having paid exorbitant salary increases and bonuses for its senior executives. NUMSA is disgusted and rejects this attitude as we firmly believe that what is good for the goose is good for the gander. The Eskom executives such as Mr Monde Bala, Mr Bheki Nxumalo and Mr Segomoco Scheppers were given more than 100% salary increases. Their salaries were increased from R2.8 million per annum to R5.8 million per annum.

Eskom managements’ monthly salaries increased by a whopping R250 000 per month. As if that is not enough, the same executives were paid not less than R2 Million in bonuses. This was at the back of hard-working bargaining unit workers as confirmed by the Eskom Chief Negotiator in his opening statement during the wage negotiations where he stated:

“ESKOM has full acknowledgement of the value that has come as a contribution from bargaining unit employees….As Leadership we stand on the shoulders of our subordinates. The efforts coming from the team especially those foot soldiers on the ground, to our bargaining unit employees, you contributed immensely on the stability of Eskom” Opening Statement, 25 November 2025

Therefore, NUMSA on behalf of our members have decided to go public in rejecting this double standard where Eskom senior management gives themselves more than 100% salary increases but workers are expected to accept the current offer of 7% wage increases for the respective three years of the agreement and a once off payment of R10 000 before tax for the first two years.

The fundamental question NUMSA is asking is: if management acknowledges that the operational and financial stability that has been achieved by Eskom over the past two years was at the back of the hard work performed by the bargaining unit workers of Eskom, then Eskom must explain why they cannot give workers a meaningful increase that reflects this remarkable turnaround that has been achieved?

Therefore, as a union we have been left with no option but to declare a deadlock with Eskom as the union’s experience with Eskom is very telling. In 2016 we settled with Eskom between 8.5% – 10% salary increase when Eskom made a profit of R4.6 billion. In 2018, Eskom made an offer of a 0% wage increase to workers and we settled on 7.5%, in 2019 we settled on 7% and in 2020 we settled on 7%. This was at a time, from June 2018 to 2022 where the economy and the country experienced devastating rolling blackouts that cost the economy not less than R500 billion.

In 2021 we were victims of COVID-19 and Eskom took advantage of the prevailing conditions and unilaterally imposed a 1.5% wage increase. In 2022, we settled at 7% when Eskom was making a loss of R24 billion. This was when rolling black outs further costed the economy not less than R800 billion from 2022 to 2023. Therefore, it is difficult for the NUMSA to accept that Eskom’s management can so easily forget that it was NUMSA that advanced a position that instead of negotiating every year, parties should settle on a 3-year agreement which will bring both operational and financial stability. However, our experience in this round of negotiations and the attitude adopted by Eskom, is the one that has no appreciation for hard work that and toiling workers of Eskom to keep the “LIGHTS ON” in both our communities and powering the economy.

When Eskom made a loss of R24 Billion in 2023 and a further loss of R55 Billion in 2024, we settled on 7% wage increases for the three respective years effective July 2023. At that time, Eskom’s cash and cash equivalent were sitting at R8 Billion and R24 Billion, respectively.

In November 2025, Eskom posted a R24 Billion profit for the mid-year results and confidently indicated that they are cruising nicely to post a profit of R18 Billion by the end of the financial year, which is R2 Billion more than what they have forecasted. We have also noted that Eskom is forecasting that it will post a healthy profit of R22 billion in 2027 and a profit of R35 billion for year 2028. Eskom’s closing cash balance under the same period is forecasted at R53 Billion and R42 Billion, respectively.

Against this backdrop, there is no reasonable justification as to why Eskom cannot offer workers a much improved offer on salaries compared to 2022 and 2023 negotiations and also put forward a reasonable offer on all other allowances and benefits, especially those allowances that were last increased in 2017.

NUMSA is very clear that Eskom workers are confronted like anyone else, with all inflationary pressures such as the unaffordable basket of food, transport costs where workers are part of being ravaged by the current petrol price increases. This fuel increase means that workers who are using 60L petrol cars, must pay an additional R1400 to fill up the tank for a month. Workers who are using 80L diesel bakkies, must now pay an additional R3300 to fill up the tank for the month.

Agricultural inputs, such as fuel, freight and logistics cost have significant impact in increasing agricultural productivity, which in turn affects food prices. Undoubtedly, the sharp increase in diesel cost will drive up the prices of food when taking into account the increase in electricity tariffs (8.76% and 9%) that have started on 1st April 2026.

The fundamental question then becomes can the current offer on the table cushion workers against this rising cost of living when the current offer of 7% for a worker at Task Grade 4 will get a mere R1360 before Tax and once tax is deducted this will be approximately R900.

In all these circumstance NUMSAs has advanced and we have been prepared to compromise and we demand that Eskom must give 8% in the first year and 7% and 7% in the following two years, and that Eskom must pay a lumpsum of a once-off R10 000 after tax in which our view is perfectly reasonable under the circumstances.

NUMSA calls on the Minister of Electricity Kgosientsho Ramokgopa, the Eskom board and the Eskom GCE Dan Marokane to intervene to resolve the current impasse between workers and Eskom before relations are completely strained and polarized with a possibility of losing the necessary productivity to deliver reliability of supply of energy by workers.

All NUMSA constitutional rights and related rights are strictly reserved!

Issued by:
Irvin Jim
NUMSA General Secretary
073 157 6384

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