State-owned power utility Eskom will implement a 1.5% basic wage increase with effect from July 1.

Eskom says the offer is dependent on the efficiencies and savings realised from reviewing certain elements of employee benefits where there are excesses.

The utility has identified possible adjustments in the overtime, travel and transfer benefits, besides others. These adjustments will also be implemented with effect from July 1.

"This will enable management to better protect jobs at Eskom, address and manage the risk to the organisation’s sustainability, allowing Eskom to play its critical role of supplying electricity to the South African economy and in the public interest," it states.

The decision has been formally communicated to the three recognised trade unions, namely the National Union of Mineworkers, the National Union of Metalworkers of South Africa and Solidarity.

“When Eskom keeps the lights burning in South Africa, and electricity supplied to crucial medical facilities, we are playing our part in ensuring that hospitals and businesses can operate, save lives and get South Africans back to work,” says Eskom group CE André de Ruyter.

Wage talks ended on June 2, with Eskom declaring a dispute when it could not reach any agreement with the unions.

No resolution could be reached on June 10 at the Commission of Conciliation, Mediation and Arbitration (CCMA) head office. The following day Eskom received notification that organised labour had referred the dispute to the CCMA for arbitration. The parties are still waiting for the arbitration process.

“As proud, caring and committed South Africans, we cannot allow a dispute over wages to compromise our national interest and hold hard working South Africans and their families hostage,” says De Ruyter.

"Eskom urges all its employees and labour unions to put the national interest and respect for the rule of law first," the utility adds.

Generation, distribution and transmission of electricity are classified as essential services and Eskom employees are legally prohibited from participation in unlawful industrial action.