South African power utility Eskom’s revised offer of a 6 per cent salary increase has been rejected by two of the country’s largest trade unions, intensifying wage negotiations at a pivotal juncture for the national electricity provider.
The Southern African Times has confirmed that the National Union of Mineworkers and the National Union of Metalworkers of South Africa declined the improved offer following a third round of talks in Johannesburg. Eskom had initially tabled a 5.5 per cent increase before raising it to 6 per cent last week in an effort to move negotiations forward.
The National Union of Mineworkers has adjusted its wage demand to 12 per cent, down from an earlier position of 15 per cent. The revised demand remains significantly above South Africa’s annual consumer inflation rate, which stood at 3.6 per cent in December 2025 according to official statistics. Union representatives have stated that workers believe their contribution to stabilising electricity generation warrants a higher adjustment.
The National Union of Metalworkers of South Africa has similarly rejected the current offer, indicating that it does not meet members’ expectations. Further discussions between Eskom and organised labour are scheduled to continue this week. A third union involved in the process has not issued a public statement, citing the sensitivity of the negotiations.
The talks take place within a changing operational and financial landscape for Eskom. After years characterised by rotational power cuts and financial strain, the utility has reported improved performance at several coal fired power stations. This has coincided with the suspension of load shedding and the reporting of its first annual profit in eight years. While these developments have been welcomed by industry and households alike, the durability of this recovery remains closely linked to cost management, infrastructure investment and debt servicing obligations.
Eskom previously concluded a three year wage agreement in 2023 that granted non managerial employees annual increases of 7 per cent. The current negotiations are aimed at securing another multi year settlement, which the utility views as essential for financial planning and operational stability. For labour, the negotiations are framed within broader concerns about income security, living costs and the equitable distribution of gains associated with improved performance.
Beyond South Africa, Eskom’s stability holds regional implications. The utility plays a central role in the Southern African Power Pool, supporting interconnected electricity systems across neighbouring states. Labour stability within Eskom therefore carries significance not only for domestic economic activity but also for energy coordination and industrial continuity in parts of Southern Africa.
The Southern African Times will continue to follow the negotiations, recognising that their outcome will shape both workplace relations and the trajectory of energy security in the region.
