Trade unions have rejected president Cyril Ramaphosa\u2019s plan to split Eskom into three business units, City Press reported.<\/p>\n
The trade unions believe the change is the first step towards privatising the power utility, and will lead to job losses.<\/p>\n
South African Federation of Trade Unions (Saftu) general secretary Zwelinzima Vavi called the move a \u201cdeclaration of war\u201d and said they plan to retaliate by protesting in parliament during finance minister Tito Mboweni\u2019s budget speech in February.<\/p>\n
Saftu said it would initiate a national shutdown in March, to protest the unbundling plan.<\/p>\n
Cosatu told the City Press that unions would be willing to negotiate with the government on Eskom, but it would not accept any move towards privatisation of the power utility or any job losses.<\/p>\n
\u201cThis is their mess, they can unbundle five times if they want to but no job should be lost even if it means they have to reskill the workers, they should do that,\u201d said Cosatu spokesperson Sizwe Pamla.<\/p>\n
Power utility Eskom is in crisis, according to president Ramaphosa, and it needs to completely restructure its business model.<\/p>\n
While delivering his state of the nation address on Thursday, Ramaphosa said that the power utility will operate as Eskom Holdings, and will will focus on generation, transmission and distribution.<\/p>\n
According to the president, Eskom has come up with a nine-point turnaround plan, which is supported by government.<\/p>\n
\u201cIn line with this plan, Eskom will need to take urgent steps to significantly reduce its costs. It will need more revenue through an affordable tariff increase,\u201d he said.<\/p>\n
Steps also need to be taken to reduce municipal non-payment and confront the culture of non-payment that exists in some communities.<\/p>\n
\u201cIt is imperative that all those who use electricity \u2013 over and above the free basic electricity provided \u2013 should pay for it.\u201d<\/p>\n
Government will also support Eskom\u2019s balance sheet, and the minister of finance will provide further details on this in the budget speech.<\/p>\n
\u201cIt is imperative that we undertake these measures without delay to stabilise Eskom\u2019s finances, ensure security of electricity supply, and establish the basis for long-term sustainability,\u201d the president said.<\/p>\n
The easiest way to rescue ailing state power utility Eskom would be for the government to assume part of its R419 billion debt, chief executive officer Phakamani Hadebe said in an interview last week<\/a>.<\/p>\n \u201cThe debt swap is easy for the government,\u201d Hadebe said, shortly after president Ramaphosa’s announcement.<\/p>\n
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