Eskom rejects 100% executive pay hike claim

Update: Eskom says NUMSA’s claim that executives got 100% salary hikes across the board is false. The power utility says only three executive roles received market-related adjustments in the 2025 financial year. Eskom also announced on Friday that it had signed a three-year wage deal with NUM and Solidarity, locking in a 7% annual increase for bargaining-unit workers from 1 July 2026, MyBroadband reported.

Eskom is facing fresh pressure after NUMSA claimed the power utility wants to increase executive salaries by 100% while offering bargaining unit workers a 7% wage increase. The union declared a wage deadlock on Tuesday, 14 April 2026, after rejecting Eskom’s latest offer, according to MyBroadband.

NUMSA chief negotiator Wandisile Pram told 702 that the union believes Eskom is short-changing workers. He alleged executives earning about R2.8 million could see that rise to R5.8 million, while ordinary workers would take home far less from the proposed 7% increase. MyBroadband reported that Eskom did not respond to questions about the union’s claim.

Union says workers are carrying the burden

Pram argued that Eskom’s gains were built on the labour of bargaining unit workers, who make up most of the utility’s workforce. He said workers are under pressure from rising food prices, electricity tariffs and fuel costs.

He also told 702 that some workers would see only about R1,000 extra after tax under the current offer, while transport costs alone could rise by more than R4,000 a month, based on Central Energy Fund estimates cited in the interview. NUMSA wants Eskom to move to 8%, saying that would be more reasonable.

Eskom’s turnaround fuels the dispute

The wage clash comes after Eskom reported a sharp financial recovery for the year ended 31 March 2025. Revenue rose 15.2% from R295 billion to R341 billion. Profit before tax swung to R23.9 billion from a R25.5 billion loss the year before. After-tax income improved from a R55 billion loss in 2024 to a R16.05 billion profit in 2025, MyBroadband said.

But that recovery is not the full picture. Eskom’s audit opinion was still qualified because of material uncertainty around its ability to continue as a going concern.

Economist pushes back on salary increases

Efficient Group chief economist Dawie Roodt has taken the opposite view. According to MyBroadband, he argued Eskom staff should face salary cuts rather than rewards, saying the utility’s improved performance does not justify higher pay. He also said private power generation, not Eskom alone, helped reduce pressure on the grid.

The dispute now leaves Eskom under renewed scrutiny, with workers demanding a bigger share of a recovery they say they helped deliver. Source provided by the user: