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South African power utility Eskom has finalised a new three-year wage deal scheduled to begin in July. The agreement secures an annual 7% salary increase for staff throughout the duration of the contract.
Although the National Union of Metalworkers of South Africa (NUMSA) has not yet signed the document, Eskom confirmed the deal is legally binding as it has been approved by the other two major unions, which represent over 75% of the bargaining unit.
The 7% annual raise sits comfortably above the current national inflation rate of 3%, though experts warn that regional conflicts could push inflation toward 4% in the near future.
This latest agreement mirrors the previous three-year contract established in 2023, which also provided consistent 7% increases for non-managerial staff.
NUMSA, however, continues to advocate for an 8% increase for the first year and has suggested that the dispute could lead to arbitration and public demonstrations.
This labour stability comes at a pivotal time for the state-owned utility, which produces the majority of the nation’s electricity.
After years of financial losses and frequent power cuts that hampered the economy, Eskom recently achieved its first full-year profit in nearly a decade.
A significant improvement in the performance of its coal-fired power plants has also enabled the company to maintain a steady supply of electricity and end the nationwide blackouts that previously plagued the country.
