/ 19 April 2013

Numsa calls for centralised wage talks at Eskom plants

Numsa Calls For Centralised Wage Talks At Eskom Plants

That's if the National Union of Metalworkers South Africa (Numsa) has its way.

Unions involved in the talks have pushed for a joint project labour agreement, covering the conditions of employment for workers at Kusile and its twin plant Medupi, both of which have experienced recent labour unrest. In Medupi's case, this has seriously affected construction.

Numsa and Solidarity told the Mail & Guardian this week that a central project labour agreement between the two sites was on the table, and said this would speed up the negotiations on site and help to avert future strike action.

The National Union of Mineworkers could not be reached for comment on the proposal this week.

Analysts also agree that, in this case, collective bargaining makes sense, given the immense pressure Eskom is under to complete the two plants – especially Medupi, which is now behind schedule by 18 months.

Similarities between the plants' construction and operations make the case for a central agreement. But site-specific issues such as food, accommodation and contractors are stalling the process. Even without a centralised agreement, workers at either site could strike in sympathy with workers at the other, and this would be protected in terms of South African labour law.

But Numsa has taken its demands a step further. The union's national sector co-ordinator on metals and energy, Stephen Nhlapo, said Numsa will push for collective bargaining across the construction sector as the government embarks on its ­multibillion-rand infrastructure roll-out programme.

Salary increments
Talks were scheduled to resume at Kusile this week between Eskom, the unions and contractors. The M&G understands that negotiations went ahead at Medupi but were delayed at Kusile. Workers downed tools at Kusile last week when parties were unable to agree on matters such as workers' accommodation, food and salary increments. Nhlapo said workers returned to the site on Monday on condition that all parties went back to the negotiating table.

Kusile's first unit is scheduled to be in commercial operation by 2014, with the last of its units scheduled to go online by 2018. Nhlapo said parties at Medupi probably agreed to the unions' terms on centralised negotiations because of the immense pressure Eskom is under to have the station running by December.

Lee Coetzee, a national organiser on major projects at Solidarity, said the union is also pushing for a centralised negotiation between the two plants. "We made that proposal to the public enterprises minister, Malusi Gigaba. We cannot keep going back and forth between the two sites. We said, let's get everybody in the same room, although I don't think it's likely to happen."

Nhlapo warned that if an agreement is not reached soon at Kusile it could have dire consequences for the rest of the industry. He was adamant that the unions had the backing of Gigaba and Eskom on a central document between the two sites.

Gigaba's spokesperson, Mayihlome Tshwete, said that, although Gigaba believed there were lessons to be learnt from Medupi that should be applied at Kusile, he could not confirm whether the minister was referring to the project labour agreements.

Enormous national importance
Nhlapo said Eskom was "hands on" in the negotiations. Coetzee agreed, andadded that the same executives who were negotiating at Medupi were now at the table at Kusile.

The unions are sceptical that major contractors will agree to the deal because different companies are employed at the sites. Eskom spokesperson Hilary Joffe said talks were proceeding well at both sites. "At both Medupi and Kusile, the project labour ­agreements which governed labour relations on the site are being ­renegotiated into new partnership agreements between labour, ­contractors and Eskom."

Tony Healy, a labour law expert from Tony Healy & Associates, said collective bargaining in this instance was advisable, but said that decentralised negotiations at Medupi and Kusile would not prevent strike action, as either site could strike in sympathy with the other, and this would be protected. He said the Medupi labour agreement was used to draft the Kusile document.

The two sites are also close geographically, and the speedy construction of both plants is a matter of "enormous national importance".

Fabian Scherer of Political Analysts South Africa also believed that a collective bargaining approach would benefit Eskom. "Considering South Africa's high need for electricity, it is of great importance that Medupi and Kusile relieve the pressure on the country's grid as soon as possible.

"In the end and for the sake of expediency, collective bargaining in Medupi and Kusile, at least in the short term, would raise the pressure to reach an agreement."