NUM’s reaction to SONA by President Cyril Ramaphosa and an Update on the Collapsed Eskom Wage Negotiations

• On Eskom Wage Negotiations

The National Union of Mineworkers (NUM) is highly perturbed by the failure of both parties at the Eskom Central Bargaining Forum (CBF) to reach a settlement agreement on salaries, conditions of service, and organisational rights. The parties agreed to initiate negotiations early to address the revision of the Recognition Agreement (RA), which was established in 2000.  This document governs the relations between Eskom and its recognized trade unions. The CBF failed to conclude a new RA.

Eskom has what it termed a final offer of 6% after the NUM’s revised and consolidated demands from 15% to 12%. For the previous negotiations where Eskom was reporting losses, it offered workers at least 7% with a R10000 once-off payment. For the financial year 2024/2025, Eskom reported a net profit of 16 billion rands. Workers expect better salaries as a reward for their hard work. Eskom further offered a once-off increase of R360 in housing allowance. The demand by trade unions is motivated by the high cost of living in this country. Food, petrol, and electricity have increased to unaffordable levels in this country. We urge Eskom to reconsider its position and enhance its offer to our members. Eskom has attempted to downgrade our conditions of service. Our members are very clear that they reject anything that downgrades the conditions of employment. We also want to state that the recognition of trade unions must remain at the Holding level, including all the subsidiaries.

The NUM is opposed to transmission asset transfer (ownership) to an independent TSO, and further calls for urgent labour consultation before any further steps

We have noted the directive issued by President Ramaphosa in his State of the Nation Address of 12 February 2026 instructing that the assets of the National Transmission Company South Africa (NTCSA) a wholly owned Eskom Holdings SOC LTD subsidiary, be transferred to a fully independent Transmission System Operator (TSO) outside of Eskom Holdings, despite the Energy Regulation Amendment Act not providing an express empowering provision for such an end state of ownership.

The NUM reiterates its well-established opposition to the unbundling of Eskom in any form. We have consistently maintained that separating Eskom into multiple entities risks serving the interests of private capital at the expense of workers, vulnerable communities, and the long-term energy security of South Africa. The President’s SONA directive does not alter this position.

• Inadequate labour consultation

When NTCSA was separated from Eskom in July 2024, organized labour was not meaningfully consulted. The NUM lodged formal disputes with Tokiso Dispute Settlement, which remain unresolved to date, currently at an appeal stage. The announcement of a further and far more significant step, transferring strategic assets to an entity outside the Eskom group, raises the stakes considerably. The NUM insists that structured and substantive engagement with organized labour must take place before the National Energy Crisis Committee (NECOM) finalizes any proposals.

• Worker protections must be guaranteed

Employees currently within NTCSA were transferred on existing Eskom Holdings SOC LTD terms and conditions and remain members of the Eskom Pension and Provident Fund (EPPF). Moving assets to a fully independent TSO creates unresolved questions regarding the continuity of pension arrangements, medical aid, housing allowances, and other conditions of service. While section 197 of the Labour Relations Act provides a legal floor of protection, government and management must go further by providing written, binding guarantees that no employee will be worse off as a result of restructuring.

• Financial risks must not be shifted onto workers

Advice by transaction advisers, according to Mr Dan Marokane (Eskom GCE) have indicated that the proposed transfer could trigger cross-default provisions affecting approximately R400 billion in debt exposure. In addition, it has been indicated that Eskom Holdings would require compensation for the transfer of transmission assets, estimated at approximately R100 billion, in total about half a trillion rands the public fiscus stands to incur in a quest to attain independent TSO. These financial realities highlight the scale of risk and complexity involved. Any instability arising from a poorly managed transition, including debt restructuring, compensation funding, or tariff impacts, will ultimately affect employment levels, operational capacity, energy security and affordability for the public.

• The NUM calls on the NECOM task team to:

Convene urgent, structured consultations with all recognised trade unions representing Eskom Holdings SOC LTD and NTCSA employees within the first month of the three months declared by the President, to be consulted and/or discuss in good faith, amongst other things:

• Associated risk of transferring ownership of transmission assets to independent TSO, on Eskom Holdings SOC LTD and NTCSA
• Written guarantees preserving all employment terms, conditions, and benefits, including EPPF membership, beyond the ones conferred in terms of s197 of the LRA
• Transparent and definite plan addressing financial risks, cross-default mitigation, and compensation arrangements

Eskom Holding SOC LTD and NTCSA workers built this country’s grid, in the public interest and energy security of our country, they deserve better than learning about decisions shaping their futures and that of the citizens and economic stability of our country, through a State of the Nation Address.

For more detailed information, please contact:

Khangela Baloyi, NUM Energy Sector Coordinator, 072 450 6251

The National Union of Mineworkers
7 Rissik Street.
Cnr Frederick Johannesburg
Tel: 011 377 2111 Cell: 083 809 3257
Twitter: @Num_Media

Facebook: https://www.facebook.com/pages/NUM/10086002340216