The Congress of South African Trade Unions expects a plan that it\u2019s proposing to save Eskom from its debt burden to be ready within weeks, said the labor federation\u2019s parliamentary coordinator.<\/p>\n
The labor group, an ally of the ruling African National Congress, has proposed using the state pension fund manager, the Public Investment Corporation and government-owned development finance institutions to cut the power utility\u2019s debt by R254 billion ($16.3 billion) to R200 billion.<\/p>\n
The company\u2019s dire finances have led to regular power cuts and stagnant economic growth.<\/p>\n
While there was initially some disagreement within Cosatu as some affiliate unions were concerned about the plan consultations have now been held, Matthew Parks, the coordinator, said.<\/p>\n
The matter was discussed at the Presidential Working Committee, which groups labour business and other stakeholders, on Monday, he said.<\/p>\n
\u201cWe do appreciate that its a very emotional issue\u201d because of state corruption, he said. \u201cYou are going to an institution that has been broken by corruption.\u201d<\/p>\n
Cosatu and Business Unity South Africa, the main business lobby group, had previously said they\u2019d hoped a pact would be announced in last month\u2019s state-of-the-nation address, but this was moved out to allow for more consulting.<\/p>\n
Labour officials also pressed the government over they see as its lack of urgency in selling broadband spectrum needed by telecommunications companies, finalizing the public procurement bill and setting a levy on exports of scrap metal, he said.<\/p>\n
At a later meeting of the ruling African National Congress\u2019s National Working Committee, South African Airways, the state airline that\u2019s undergoing a bankruptcy process, was discussed, Parks said.<\/p>\n
Under some of the scenarios being considered it could shed 6,500 jobs, Parks said. The labour group wants talks to be held with other airlines to absorb some of the jobs.<\/p>\n
\u201cWe\u2019re adamant that government must honour its job summit agreement commitment not to retrench workers, this includes\u201d SAA, he said in an interview.<\/p>\n
\u201cWe\u2019ve told government they must look at alternatives to retrenchments including redeployments within state owned enterprises, the public sector and service. We won\u2019t agree to retrenching any workers.\u201d<\/p>\n