Ramaphosa promises no job losses at Eskom | Fin24
 
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Ramaphosa promises no job losses at Eskom

May 03 2019 10:22
Antony Sguazzin

President Cyril Ramaphosa has said the government won’t cut jobs at state power utility, Eskom, as it divides the company into three separate businesses.

Ramaphosa announced the plan to divide the company into generation, transmission and distribution units in February, and there was an immediate backlash from labor unions who are concerned that the plan could lead to job losses. Eskom has 47 000 workers, a figure the World Bank has said is 66% too high, and debt in excess of R430bn. 

“What we will need to do going forward is to strengthen Eskom,” Ramaphosa said in an interview with Newzroom Afrika, a Johannesburg-based television station that started broadcasting today. “As as the restructuring job unfolds, no we don’t see the loss of jobs.”

Eskom has been described by Goldman Sachs Group as the biggest threat to the South African economy and isn’t generating sufficient cash to meet its maintenance costs, resulting in frequent power cuts so far this year. It has been embroiled in corruption scandals. The government agreed to give it a record R69bn bailout in February.

The company won’t cut power to consumers this winter, Ramaphosa said, which runs from June until the end of August.

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