Eskom has offered labour groups an annual wage increase of as much as 6.5% in a fourth round of negotiations that have dragged on for months.

The State-owned power utility tabled a three-year deal that include a basic salary increase of 6.5% in July, another 6.5% next year and 6% in 2028, according to a copy of the offer that was confirmed by Eskom. There are also additional increases to the housing benefit and funeral cover.

The offer “was indeed tabled during round 4 of salary negotiations with the three recognised trade unions,” an Eskom spokesperson said in a reply to questions.

That still leaves a sizeable gap between Eskom and at least one key union. The latest demand by the National Union of Mineworkers, representing about 15 000 employees at the State-owned utility, was for a 12% increase. The labour group started with 15% in October, ahead of the talks.

NUM and the National Union of Metalworkers of South Africa rejected Eskom’s offer of a 6% raise last month.

Previous wage talks proved difficult for the utility, even when it claimed to lack the funding for increases. Labour groups agreed to a 7% annual raise for three years in the midst of acute electricity outages in 2023. The current wage agreement is set to expire in June.