Eskom Secures Three-Year Wage Deal, Strengthening Stability Amid Power Sector Recovery

Despite NUMSA’s position, Eskom confirmed that the agreement complies with labour legislation and established bargaining processes, ensuring its enforceability across the organisation.

Eskom has concluded a three-year wage agreement with the majority of organised labour, marking a critical step toward stabilising its workforce and sustaining recent improvements in electricity supply and system performance.

The agreement, finalised through the Central Bargaining Forum (CBF), provides for a 7% annual salary increase for employees within the bargaining unit, effective from 1 July 2026 and running over a three-year period.

Majority union support secures binding agreement

The deal has been signed by unions representing more than 75% of Eskom’s workforce within the bargaining forum, making it 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 deadlock and opted not to sign.

Despite NUMSA’s position, Eskom confirmed that the agreement complies with labour legislation and established bargaining processes, ensuring its enforceability across the organisation.

Labour stability key to Eskom’s turnaround

Eskom Group Chief Executive Dan Marokane described the agreement as a crucial milestone in reinforcing organisational stability at a time when the utility is focused on consolidating operational gains.

“The conclusion of the wage process represents 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,” Marokane said.

The utility has made measurable progress in improving generation performance and reducing load shedding in recent months, with labour stability seen as a key enabler of continued recovery.

Multi-year framework reduces volatility

The agreement continues Eskom’s established practice of multi-year wage deals—an approach designed to reduce uncertainty associated with annual wage negotiations.

By locking in a three-year framework, Eskom and labour have created a more predictable cost environment, allowing for better financial planning and operational continuity.

Key benefits of the multi-year agreement include:

• Reduced risk of annual industrial action

• Improved workforce planning and retention

• Greater cost predictability for the utility

• Enhanced investor confidence in Eskom’s stability

Analysts note that such agreements are particularly important for capital-intensive utilities like Eskom, where operational disruptions can have wide-ranging economic impacts.

Balancing wage growth and financial sustainability

The 7% annual increase comes at a time when Eskom continues to navigate financial constraints, including high debt levels and the need for ongoing infrastructure investment.

While above inflation in some projections, the increase is expected to be balanced against productivity gains and improved operational performance.

Eskom emphasised that maintaining a stable and motivated workforce is essential to achieving long-term sustainability.

“We recognise that our people are central to driving sustainable growth and building an organisation that is resilient and attractive to future partners and investors,” Marokane said.

Ongoing engagement with unions

Although the agreement has been concluded, Eskom confirmed that it remains committed to continued engagement with all recognised trade unions, including NUMSA, on broader workplace and operational matters.

“The agreement concludes a structured and intensive collective bargaining process. While negotiations were robust, Eskom acknowledges that NUMSA has declared a deadlock,” the utility said.

Eskom added that it will continue structured dialogue through the CBF on issues of mutual interest.

Supporting reliable power supply

Ultimately, the wage agreement is seen as part of Eskom’s broader strategy to ensure the safe and reliable operation of South Africa’s power system.

With labour stability secured over the medium term, the utility is expected to intensify its focus on:

• Maintaining generation performance improvements

• Strengthening maintenance programmes

• Enhancing operational efficiency

• Supporting the country’s energy security

As South Africa continues its energy recovery efforts, the agreement provides a foundation for sustained progress—linking workforce stability directly to improved service delivery for millions of electricity users.