Eskom to count cost of higher wage offer
06 Jul 2010 06:38 #275
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While the new Eskom wage offer does not necessarily mean that consumers will have to pay higher prices for their electricity, it does put more pressure on the power utility to extract further efficiencies from its business.
Eskom averted threatened strike action by clinching an 11th hour wage deal with three trade unions - the National Union of Mineworkers, the National Union of Metalworkers of South Africa and Solidarity - on Sunday.
The trade unions welcomed Eskom's revised offer of a nine percent wage increase and a R1 500 housing allowance, saying they would urge their members to accept the offer.
Eskom previously offered an 8.5% wage increase and a R1 000 housing allowance while the unions demanded a nine percent wage increase and a R2 500 housing allowance.
But at almost twice South Africa's May inflation rate of 4.6%, the wage increase raises the bar for public sector wage increases.
The offer, which unions have until Friday to rubber stamp, could put the government under pressure as public sector pay negotiations are still to be concluded.
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