HomeIndustry SectorsFinance and PolicyCCMA orders Eskom to increase wages

CCMA orders Eskom to increase wages

NUM national spokesperson
Lesiba Seshoka
Johannesburg, South Africa — ESI-AFRICA.COM — 02 February 2012 – The Commission for Conciliation, Mediation and Arbitration (CCMA) has clarified the details of its arbitration award handed down against South African national power utility Eskom Holdings on 23 December 2011.

In a statement here welcoming the arbitration decision and clarification, the National Union of Mineworkers (NUM) explained that Eskom had taken its dispute with the NUM on the unilateral implementation of a 7% wage increase to the CCMA for compulsory arbitration. The arbitrator had ruled that Eskom must increase its wage increment by an additional 1.1% retrospective from July 2011, and by 8.1% in 2012. The utility was also ordered to increase its housing allowance by R500 to R2,000 a month.

NUM national spokesperson Lesiba Seshoka confirmed that the arbitrator had clarified the matter to Eskom yesterday and said the NUM now expected Eskom to back-pay its workforce accordingly. The company had wanted the increase to be given as from the date of the arbitration award in December 2011, but the arbitrator had insisted yesterday that payment would be retrospective from July 2011.

Seshoka explained that the outcome of the compulsory arbitration was binding for the duration of the wage agreement, which was two years.