Eskom workers vow to fight ‘disguised’ retrenchments

Workers employed at Eskom and the coal mining sector have vowed to fight what they see as “disguised” retrenchments at Eskom, the closure of coal mines, and the government’s introduction of Independent Power Producers in the energy renewal sector.

Once more the National Union of Metalworkers of South Africa (Numsa) and the National Union of Mineworkers (NUM) have agreed to join forces to fight to prevent the pending job losses. They believe that the relationship between Eskom and the IPPs would result in retrenchments due to the high price at which Eskom purchased power per unit from the IPPs.

The unions insisted Eskom planned to retrench 7,000 workers through voluntary packages in the next five years but the embattled power state enterprise was adamant that no such plan existed. The unions’ claims were reinforced by a Reuters report that said Eskom intended to reduce its headcount from 48,678 to 41,613 by 2023 across all levels, something that Eskom vehemently denied.

Numsa and NUM previously put aside their political differences as they united against Eskom during their joint strike from June to August this year. They forced the company to move from the initial zero wage offer to a 7.5% increase three-year settlement. Public Enterprises Minister Pravin Gordhan had to intervene to convince Eskom to budge.

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In the latest action, Numsa, an affiliate of the newly established South African Federation of Trade Union, and NUM, a Cosatu affiliate, would hold a joint march in Pretoria on Saturday against retrenchments, the closure of coal mines in the country, and the controversial IPPs. The government went ahead to introduce the IPPs in the renewable energy sector despite the opposition from the two unions.

Numsa general secretary Irvin Jim said they would fight the IPPs with every power at their disposal. “From the time we learned of government’s plans to finalize the IPP contracts in March this year, we raised the alarm and attempted to interdict the department of energy. We were aware of the dangers posed by this project and we fought valiantly to convince the courts to block the finalisation of the contracts. Our position on this issue has not changed. We remain vehemently opposed to the IPP program.”

Jim stressed that as Numsa, they wanted a just transition from coal to renewable energy. “A just transition is one where the transition from coal to renewable energy does not negatively affect workers and the community at large, and, it must not disadvantage the next generation. Instead, the transition we are experiencing will worsen the conditions for the working class.”

Jim justified why his union decided on a joint march with NUM despite it being a Cosatu affiliate, Numsa having been expelled from Cosatu, and NUM’s support for Ramaphosa whom Numsa despised as the enemy of the working class.

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“It is always important that for us, as a Marxist-Leninist inspired trade union, to identify the class interests of any situation. We are participating in this march because we believe it is consistent with our commitment to advancing the interests of the working class. Furthermore, we believe that when the working class is united around a common vision, it can be a motive force for change, and can radically transform society in its own interests.

“It is in our class interests to unite and fight back against this vicious attack by the state on the working class, this is a battle for our survival and this is why we believe that unity of the working class on this issue is paramount.”

He said the introduction of IPPs was an expensive project that would effectively collapse Eskom. Jim said while it cost the state power supplier 40c per kilowatt hour to produce electricity through nuclear and less than R1 if using coal, Eskom paid R2.22 if using the IPP’s but yet sold it at a loss at 85c to the consumer

“What kind of nonsensical, impractical arrangement is this? It is obvious that the state is deliberately trying to collapse Eskom! It is our duty as the working class to defend this valuable SOE. Eskom should go back to its mandate of ensuring that the entire nation is electrified. It should be providing free electricity for all, and affordable electricity for industry.”

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Besides, according to Jim, the IPP’s would result in at least 92,000 jobs being lost. Also in order to accommodate the IPP program, the state must close five coal-fired power stations in Mpumalanga.

In a previous interview, NUM chief negotiator at Eskom Helen Diatile said the unity against Eskom was important for both NUM and Numsa. She said NUM members themselves demanded their unions must join hands with Numsa if it was to win the battle for better wages at Eskom.

“The decision to work with Numsa came from the bottom up and not the other way around. The workers told our leadership that without Numsa, the NUM alone would not be able [to] win this fight. This was a real worker control in action, the grassroots on the factory floor dictated terms about what is good for them,” Diatile said.

The wage dispute was finally settled based on a three-year agreement beginning with a 7.5% increase in the first year, which was a marked move from the initial zero wage offer by Eskom.

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