South Africa’s powerful trade union federation Cosatu on Thursday threatened to call a strike if state-owned electricity utility Eskom is allowed to raise electricity tariffs by 18%, as requested.
Cosatu’s general secretary, Zwelinzima Vavi, told reporters that the federation was canvassing members for a possible general strike next year if the price hike is imposed.
”Should the negotiations fail, Cosatu will mobilise the rest of the civil society to support a series of general strikes,” Vavi said.
Cosatu is South Africa’s biggest labour group, with a membership of more than a million people.
South Africa’s energy regulator will decide next month on a request from Eskom, the world’s lowest-cost electricity producer, for an 18% tariff increase for 2008 and a 17% rise in 2009 to help fund a programme to expand supply.
Eskom plans to spend about R150-billion ($22-billion) over the next five years to upgrade old infrastructure and build new plants to boost capacity that is struggling to keep pace with fast-growing demand.
Major cities, including industrial and financial hub Johannesburg, are struck by regular power cuts.
Eskom says current electricity prices are not sustainable if the company is to cope with an increase in electricity demand of 4% a year.
Vavi said the 18% increase was exorbitant and warned that the labour federation would not accept it.
”We completely reject it and we will make submissions to the regulator to reject the hike. It is way above inflation which is at 6,7%,” said Vavi. – Reuters