KEY POINTS
- NUM is demanding urgent consultations with Necom over Eskom’s transmission asset transfer.
- President Ramaphosa gave the task team three months to report on restructuring.
- The union seeks guarantees on jobs, pensions and financial risk management.
The National Union of Mineworkers has called for urgent consultations with the National Energy Crisis Committee task team. The talks relate to Eskom’s unbundling process, which has drawn renewed attention.
The demand follows President Cyril Ramaphosa’s State of the Nation Address. In his speech, he gave the task team three months to report on the restructuring of the power utility. The report must include clear timelines for phased implementation.
Ramaphosa also said the future Transmission System Operator should own and control Eskom’s transmission assets. This differs from the unbundling framework announced in December. That plan stated that the National Transmission Company South Africa would retain ownership of the assets and remain a subsidiary of Eskom Holdings.
Union pushes for structured engagement
NUM has long opposed Eskom’s unbundling. It now wants consultations with organised labour to take place within the first month of the three months set by the president.
In a statement, the union said all recognised trade unions at Eskom Holdings and the National Transmission Company South Africa must be included.
The union believes transferring transmission assets to an independent operator carries serious risks. It says the move could affect workers and the financial stability of the utility.
“The NUM insists that structured and substantive engagement with organised labour must take place before the Necom finalises any proposals,” the union said.
In a statement, the union said all recognised trade unions at Eskom Holdings and the National Transmission Company South Africa should be included in the discussions.
The union maintains that any decision on transferring transmission assets to an independent operator carries significant implications for workers and the financial stability of the utility.
“The NUM insists that structured and substantive engagement with organised labour must take place before the Necom finalises any proposals,” the union said.
Concerns over asset transfer and financial risks
Among the issues raised by the union are the risks associated with transferring ownership of transmission assets away from Eskom Holdings and the National Transmission Company South Africa.
NUM wants clarity on the potential impact such a move could have on both entities, including possible financial and operational consequences.
The union is also demanding written guarantees that preserve all employment terms, conditions and benefits. These include continued membership in the Eskom Pension and Provident Fund, beyond protections already provided under Section 197 of the Labour Relations Act, which governs the transfer of employees in business transactions.
In addition, NUM is calling for a transparent and definite plan to address financial risks linked to the restructuring. This includes measures to mitigate cross default risks and clear arrangements on compensation.
Political directive reshapes unbundling debate
Ramaphosa’s SoNA directive has added urgency to a restructuring process that has unfolded over several years. Eskom’s unbundling strategy seeks to separate generation, transmission and distribution into distinct entities as part of efforts to improve efficiency and attract investment.
According to Engineering News, the December plan envisaged the National Transmission Company South Africa operating as a subsidiary within Eskom Holdings. The president’s recent instruction, however, suggests a possible shift toward full ownership and control of transmission assets by an independent Transmission System Operator.
The evolving policy direction has heightened concerns among labour groups, which argue that insufficient consultation could undermine worker protections and create uncertainty within the utility.
NUM says meaningful dialogue within the prescribed time frame is essential to ensure that any restructuring safeguards jobs, protects benefits and addresses the financial risks facing South Africa’s power sector.
