Eskom has concluded the 2026 wage negotiations after its multi-term above-inflation wage offer was accepted by the National Union of Mineworkers (NUM) and Solidarity, representing 75% of employees in the central bargaining forum.
The power utility said the wage deal was binding on all employees in the bargaining unit, including those affiliated with the National Union of Metalworkers of South Africa (Numsa), which has declared a wage dispute.
The three-year wage deal, which will see workers enjoying increases of 7% from July 1, was viewed as establishing a “predictable environment that reduces the volatility associated with annual bargaining cycles”, Eskom spokesperson Daphne Mokwena said.
The inflation rate is hovering around 3%. Unions previously demanded increases of up to 15% before revising their demands down.
“The agreement continues Eskom’s established practice of multi‑year collective bargaining arrangements, supporting cost predictability and operational stability, which has also contributed to the delivery of Eskom’s successful turnaround strategy,” Mokwena said.
Eskom group CEO Dan Marokane said the conclusion of the wage process represented an important procedural milestone.
“It provides Eskom with the stability and predictability required to focus fully on delivering our business objectives and fulfilling our mandate to South Africa. We recognise that our people are central to driving sustainable growth and to building an organisation that is resilient and attractive to future partners and investors,” Marokane said.
However, Irvin Jim, general secretary of Numsa, which is demanding 8%, said the wage agreement was “unacceptable and provocative”.
“Numsa is extremely dismayed by this unfair position adopted by Eskom against workers. This is despite Eskom having paid exorbitant salary increases and bonuses for its senior executives.”
Numsa bemoaned what they claimed were 100% increases for top executives and bonuses of more than R2m.
Eskom reported a profit after tax of R16bn for 2025, its first profit in eight years. Profit before tax was R24bn. The turnaround was supported by government debt relief, higher electricity tariffs and a significant decrease in load-shedding, which led to lower diesel costs.
Eskom received a R254bn relief package from the National Treasury in 2023 in a programme that enjoined local government to pay their dues to Eskom. Municipalities owe Eskom more than R100bn.
Jim said the union was left with no option but to “declare a deadlock with Eskom, as the union’s experience with Eskom is very telling”. “In 2016, we settled with Eskom for an 8.5% to 10% salary increase when Eskom made a profit of R4.6bn. In 2018, Eskom made an offer of a 0% wage increase to workers, and we settled on 7.5%; in 2019, we settled on 7%, and in 2020, we settled on 7%,” he said.
“This was at a time, from June 2018 to 2022, where the economy and the country experienced devastating rolling blackouts that cost the economy not less than R500bn.
“In 2021, we were victims of Covid-19, and Eskom took advantage of the prevailing conditions and unilaterally imposed a 1.5% wage increase. In 2022, we settled at 7% when Eskom was making a loss of R24bn. This was when rolling blackouts further cost the economy not less than R800bn from 2022 to 2023,” said Jim.
“Therefore, it is difficult for Numsa to accept that Eskom’s management can so easily forget that it was Numsa that advanced a position that, instead of negotiating every year, parties should settle on a three-year agreement which will bring operational and financial stability.”
He noted in November 2025, Eskom posted a R24bn profit for the mid-year results and “confidently indicated that they are cruising nicely to post a profit of R18bn by the end of the financial year, which is R2bn more than what they forecast”.
“We have also noted that Eskom is forecasting that it will post a healthy profit of R22bn in 2027 and a profit of R35bn for 2028. Eskom’s closing cash balance under the same period is forecast at R53bn and R42bn, respectively.”
Eskom CEO Candice Hartley said the pay deal allowed Eskom employees to remain focused on execution, accountability and consistent delivery, as well as enabling the utility to attract future talent to the organisation.
“The agreement reinforces Eskom’s disciplined approach to cost management and operational efficiency. This is underpinned by Eskom’s ongoing implementation of the cost optimisation and revenue enhancement programme, which is targeting R112bn in cost savings over five years,” Hartley said.
Mokwena said that while negotiations were robust “Eskom acknowledges that Numsa has declared a deadlock and opted not to sign the current agreement. Eskom remains committed to structured and ongoing engagement with all three of its recognised trade unions on all other matters of mutual importance.”
Business Day
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