/ 20 May 2008

Eskom ‘heading for skills crisis’

A skills shortage at Eskom could affect its expansion plans, trade union Solidarity said on Tuesday.

”Eskom’s current skills shortages are already causing problems, but if the levels of alienation among Eskom staff are any indication, the company is heading for a crisis,” said the union’s Dirk Hermann.

He said a study among the union’s members (who are in technical and junior management positions) revealed that 72% were considering leaving the company.

This report will be submitted to the National Energy Regulator of South Africa (Nersa) on Friday.

”Solidarity’s report, on Eskom’s proposed rates increase, confirms that the company’s skills shortage will soon assume crisis proportions.

”In the next 15 years, Eskom must appoint around 1 000 engineers, 13 000 artisans, 11 000 semi-skilled workers, 4 000 unskilled workers and 300 scientists to tackle shortages and achieve growth,” the union said in a statement.

Eskom would have to employ between 60 000 and 100 000 employees more than its current labour force if it were to go ahead with its expansion in the next five years.

”These workers will cost Eskom approximately R12-billion per year. If Eskom does not tackle the skills problems, its expansion plans cannot proceed. The current focus is exclusively on energy resources, with a complete disregard for human resources,” said Hermann.

Nersa has accused Eskom management of complicity in the energy crisis, amid the mismanagement of power-station maintenance and coal stockpiles.

The regulator has recommended that new private power-generation capacity and independent power producers be managed independently of Eskom.

Meanwhile, Solidarity has demanded that the government meet its obligations, as an Eskom shareholder, on its request to increase electricity tariffs.

”Government has a duty as shareholder to intervene immediately and make available capital to finance Eskom expansions, either in the form of loans or as own capital,” said Hermann. ”This will not only greatly reduce the rates paid by consumers, but will also restore confidence in Eskom and government.”

The union called on the government to investigate, with the Competition Commission, coal prices and contracts.

”Eskom’s true expenditure on coal must be carefully examined. Profit margins of role players in the coal industry and the fairness of current coal pricing must be determined. The investigation should also examine the effect of Eskom’s increased short-term contracts and reduced long-term contracts on coal prices,” said Hermann. — Sapa