Despite a deep financial crisis and a R20.7 billion loss, Eskom’s senior managers are demanding a pay hike.<\/p>\n
A report by the Rapport newspaper said that senior managers are taking Eskom to the Council for for Conciliation, Mediation and Arbitration (CCMA) because they received no salary increases.<\/p>\n
There are approximately 200 managers in this group, who earn between R1.5 million and R3 million a year. They are seeking a 4.7% increase, in line with inflation, the paper reported.<\/p>\n
Eskom’s estimated 6,500 middle managers are also reportedly unhappy with the 7.5% increase given to lower-tier workers, and want to be put into the same bargaining unit as those workers.<\/p>\n
They earn between R700,000 and R2 million, according to Rapport.<\/p>\n
Bloated workforce<\/strong><\/p>\n Eskom is about 66% overstaffed, according to analysts and energy experts, which places a massive financial burden on the company which is already struggling to pay the bills.<\/p>\n The group has made efforts in the past to cut back on its costs related to employees \u2013 through retrenchments, and a wage freeze \u2013 but all measures to do so have been met with backlash from unions, including threats to shut the country\u2019s electricity grid.<\/p>\n Eskom\u2019s 2019 wage bill increased even further, hitting R32.35 billion, up from R28.83 billion in 2018 (including salaries, overtime, benefits, leave and bonuses).<\/p>\n Averaged out, this comes to R693,240 per employee (2018: R592,790)<\/strong>, the highest point average pay has reached at the company over the last 17 years.<\/p>\n At the top level, Eskom\u2019s top executives took a pay cut in 2019 on the back of the group\u2019s dismal financial performance \u2013 but still walked away with multi-million rand salaries, and several golden handshakes.<\/p>\n Exiting chief executive Phakamani Hadebe, who stepped down from the company at the end of July, received a final paycheque of R8.6 million for his one year in his position, while chief financial officer, Calib Cassim received R3.24 million.<\/p>\n The other 13 members of Eskom\u2019s group executives received a total payout of R44 million, down from R51.6 million last year. Included in the group payout are two notice payments of R6.4 million for executives who are leaving.<\/p>\n
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