Johannesburg - Power utility Eskom has been ordered to raise its wage increase to the National Union of Mineworkers (Num) by at least 1% the union said on Wednesday.
Eskom wanted to unilaterally implement a 7% wage hike, which was below the union’s demands of a 13% rise. The dispute was then referred to arbitration.
“The arbitrator ruled that Eskom must increase its wage increment by an additional 1.1% retrospective from July 2011 and by 8.1% in 2012,” Num said.
It said Eskom was also ordered to raise it housing allowance by R500 a month to reach R2 000.
Eskom was not immediately available for comment.
Wage negotiations at Eskom are fraught with legal implications, with the utility saying it is unlawful for its workforce to strike because of the devastating impact the move would have on the economy.