Eskom is heading into another closely watched wage bargaining season. The National Union of Mineworkers (NUM), which represents roughly 15,000 employees at the state-owned power utility, has tabled a headline demand of up to 15 percent. The negotiations arrive at a sensitive moment: Eskom has stabilised the grid after years of record load-shedding, reported its first profit in eight years, and is advancing a long-running plan to unbundle its operations into separate generation, transmission, and distribution entities. Below is a clear, comprehensive rewrite that explains the demand, the process, the sticking points, and the potential implications for workers, the utility, and the public.
Table of Contents
Eskom Wage Talks 2025 Quick Summary
Item |
Details |
|---|---|
Headline demand |
Up to 15 percent wage increase by the National Union of Mineworkers (NUM) |
Workforce represented |
About 15,000 Eskom employees under NUM |
Inflation context |
Roughly 3.3 percent in August, making the demand more than four times CPI |
Eskom’s position |
No comment on specifics before talks; says it will engage via the central bargaining forum |
Structural backdrop |
Eskom’s ongoing unbundling into generation, transmission, and distribution units |
Key friction point |
Union opposes decentralising bargaining across unbundled entities, wants single, centralised recognition and agreements |
Prior deal |
Labour previously agreed to 7 percent annually for three years during a period of severe power cuts; current deal runs to June 2026 |
Official site |
What Is Being Demanded and Why
NUM has signalled that an increase of up to 15 percent is necessary to restore purchasing power and recognise employees’ role in stabilising the grid. The union frames its demand against several points:
- Workers endured years of operational strain while the system suffered record blackouts.
- Eskom has since stabilised performance and reported its first profit in eight years.
- The utility plans to tap debt markets after years of fiscal stress and government support.
From the union’s perspective, the combination of operational turnaround, financial improvement, and the heavy lift borne by employees justifies a substantial wage correction. The 15 percent figure also serves as a bargaining anchor, giving NUM room to negotiate while making clear it wants a deal that significantly exceeds inflation.
Eskom Starting Stance
Eskom has declined to discuss specific numbers before the formal start of talks. The utility has, however, reiterated that it will negotiate in good faith through the established central bargaining forum and communicate adjustments tied to structural changes transparently. Historically, Eskom’s bargaining posture balances:
- Affordability: Any wage settlement carries long-term cost implications for a company that is still strengthening its balance sheet.
- Reliability: Constructive labour relations can support operational stability and help maintain the recent improvement in grid performance.
- Regulatory optics: Wage costs ultimately feed into tariff applications and financial sustainability assessments.
The Big Flashpoint: Central vs Decentralised Bargaining
A major early hurdle may be how bargaining is conducted as Eskom continues unbundling. NUM is pushing back against any move to let legally separated entities craft their own union recognition agreements and wage templates. The union argues that fragmenting bargaining would weaken worker power and complicate standardised conditions of service. It wants a single, centralised framework at the Eskom holding-company level that applies across generation, transmission, and distribution.
Eskom, for its part, has said that future adjustments linked to structural changes will be discussed transparently with all stakeholders. The outcome here matters as much as the wage number itself because it sets the template for labour relations in a post-unbundling environment.
Inflation, Purchasing Power, and the Profit Narrative
With inflation at about 3.3 percent in August, a 15 percent demand is far above CPI. Workers argue that headline CPI understates the cost pressures faced by technical staff who commute long distances, pay for specialised tools or qualifications, and shoulder rising housing and food costs. Management tends to counter that wage bills must remain aligned to productivity, affordability, and the utility’s long-term sustainability. The fact that Eskom recorded its first profit in eight years strengthens labour’s rhetorical hand, yet management will likely highlight the need to reinvest in maintenance, transmission expansion, and grid resilience.
What Happens Next: The Bargaining Pathway
- Tabling of Demands: Unions submit consolidated demands ahead of the first sitting of the central bargaining forum.
- Eskom Response: Management presents an opening offer or framework, often below labour’s headline demand.
- Technical Committees: Parties break into subgroups to cost scenarios, discuss productivity offsets, overtime rules, and allowances.
- Mediation Window: If talks stall, an independent facilitator or statutory dispute-resolution process may be invoked.
- Settlement or Escalation: Agreements can involve multi-year deals, staggered increases, or once-off allowances. Failing that, unions may ballot for industrial action within legal parameters.
Because the current three-year deal runs to June 2026, the parties could explore a variation agreement or align any new provisions with the existing timeline. That said, unions often seek mid-term improvements when circumstances change materially, such as an operational turnaround or shifts in financial performance.
Risks and Opportunities for the Public
- Tariffs and Affordability: Higher wage costs can pass through to tariff applications over time, subject to regulatory review.
- Operational Stability: Well-managed negotiations can reduce the risk of disruptions and support the grid’s recent stability.
- Unbundling Transition: Clarity over central versus decentralised bargaining will influence how seamlessly Eskom’s new entities interact with labour and private market participants.
For households and businesses, the best-case outcome is a credible, affordable settlement that preserves operational momentum while recognising the workforce’s role in improving reliability.
Why Unbundling Matters
Unbundling is intended to create clearer lines of accountability, attract investment into transmission, and open the system to competitive electricity trading. For labour, the fear is that fragmentation could erode hard-won terms and conditions. For Eskom, separate entities can sharpen cost control and operational focus. The compromise may be a hybrid arrangement that preserves central standards for core terms while allowing entity-level flexibility on certain operational items.
Lessons From the Previous Deal
When South Africa faced acute outages, labour accepted a 7 percent annual increase for three years to provide predictability and help stabilise operations. That deal, which expires in June 2026, is an important benchmark. Any upward revision now would need to show clear benefits for employees without undermining the financial and operational gains achieved since.
Frequently Asked Questions
Why is the union asking for 15 percent when inflation is about 3.3 percent?
The demand serves as a negotiating anchor and reflects claims about lost purchasing power, heavy workloads during the crisis years, and recognition for the role workers played in stabilising the grid.
Will a big wage settlement raise electricity tariffs?
It can influence Eskom’s cost base and future tariff applications, but any change still undergoes regulatory scrutiny. Tariffs reflect many inputs, including primary energy, maintenance, and capital costs.
Could bargaining be decentralised after unbundling?
That is a key flashpoint. The union opposes decentralisation and wants a single, central agreement. Eskom says any changes linked to structure will be discussed transparently.
What happens if talks stall?
The parties can use facilitation or mediation. If deadlocked, unions may follow legal steps toward industrial action, though both sides typically try to avoid disruptions to power supply.
Does the current 7 percent deal still apply?
Yes. The existing agreement runs to June 2026. Any new arrangement would either amend that deal or set a path forward aligned with its expiry.
Where can I find official updates?
Use the official Eskom website and formal statements rather than relying on unverified posts.
Conclusion
Eskom’s wage talks are about more than a headline percentage. They will shape how a newly stabilised utility manages costs, retains critical skills, and navigates unbundling while safeguarding a national priority: reliable electricity. A durable, affordable settlement that respects worker contributions, preserves operational gains, and clarifies the bargaining framework across new entities would be a constructive outcome for employees, customers, and the economy.
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