NUM raises concerns over Eskom's Transmission System Operator amid wage negotiations

The National Union of Mineworkers (NUM), currently at loggerheads with Eskom in a wage negotiation standoff, has voiced its opposition to the proposed transfer of transmission assets to an independent Transmission System Operator (TSO).

The union is calling for urgent labour consultation before any further steps are taken.

The union said it had noted the directive issued by President Cyril Ramaphosa in his State of the Nation Address (SONA), instructing that the assets of the National Transmission Company South Africa (NTCSA), a wholly owned subsidiary of Eskom Holdings, be transferred to a fully independent TSO outside of Eskom Holdings. NUM argues that the Energy Regulation Amendment Act does not provide an explicit empowering provision for such an end state of ownership.

Citing inadequate labour consultation, NUM said that when NTCSA was separated from Eskom in July 2024, organised labour was not meaningfully consulted. The union subsequently lodged formal disputes with Tokiso Dispute Settlement, which remain unresolved and are currently at the 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. NUM insists that structured and substantive engagement with organised labour must take place before the National Energy Crisis Committee (NECOM) finalises any proposals,” said NUM’s Energy Sector Coordinator, Khangela Baloyi.

Baloyi said labour is calling for written, binding guarantees that no employee will be worse off as a result of the restructuring. Employees currently within NTCSA were transferred on existing Eskom Holdings 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,” he said.

NUM also objected to financial risks being shifted onto workers. According to Eskom CEO Dan Marokane, transaction advisers have indicated that the proposed transfer could trigger cross-default provisions affecting approximately R400 billion in debt exposure.

The union noted that Eskom Holdings would require compensation for the transfer of transmission assets, estimated at approximately R100 billion — bringing the total potential exposure to about half a trillion rand in the quest to establish an 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,” Baloyi said.

NUM has called on the NECOM task team to convene urgent, structured consultations with all recognised trade unions representing Eskom Holdings and NTCSA employees within the first month of the three months declared by the President. The union is seeking good-faith consultation on, among other issues, the risks associated with transferring ownership of transmission assets to an independent TSO; written guarantees preserving all employment terms, conditions and benefits, including EPPF membership; and a transparent and definitive plan addressing financial risks, cross-default mitigation and compensation arrangements.

In a separate development, Baloyi said 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 had agreed to initiate negotiations early to revise the Recognition Agreement (RA), which governs relations between Eskom and its recognised trade unions. However, the CBF failed to conclude a new agreement.

Baloyi said Eskom has tabled what it termed a final offer of 6%, following NUM’s revised and consolidated wage demand from 15% to 12%.

“In previous negotiations, when Eskom was reporting losses, it offered workers at least 7% with a R10,000 once-off payment. For the 2024/2025 financial year, Eskom reported a net profit of R16 billion.

“Eskom has attempted to downgrade our conditions of service. Our members are very clear that they reject anything that downgrades conditions of employment. We also want to state that the recognition of trade unions must remain at the holding company level, including all subsidiaries,” Baloyi said.

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