Eskom cannot afford salary increase
Eskom Holdings SOC Ltd. said the South African state utility is unable to agree to certain union demands over wage increases and declined to make an offer on basic salary until labor groups respond.
The loss-making electricity provider “cannot afford” proposals such as an improvement in pay inequality, according to a May 4 letter reviewed by Bloomberg.
A request by unions to raise worker housing allowance has “no justification” and the required funds aren’t available in any case, the company said.
Eskom has R464 billion ($32 billion) in debt and is the most prominent of the government-owned companies burdening state finances, while regularly resorting to power cuts to keep the grid from overloading.
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