Eskom moves to cut management jobs
Rising costs and stagnant demand make retrenchment the only option
Eskom announced on Wednesday that it would start legal processes to cut staff but that only executive management would be affected. In a statement,the company said: “Despite efforts to curb expenditure, Eskom’s operating costs have continued to increase dramatically while output has remained largely unchanged. “As a result, Eskom’s board of directors has decided to review the company’s organisational design to enhance operational and cost efficiencies. As such, Eskom’s board has approved a section 189 process for its executive structure.” A section 189 process under the Labour Relations Act requires consulting all affected people about staff restructuring. But the National Union of Mineworkers (NUM), which represents workers as well as “some executives” hit back immediately in an angry statement saying that Eskom could not discuss retrenching one section of employees without union involvement. The NUM said it was “flabbergasted” at the announcement as it had not received a section 1...
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