Trade unions and the Steel and Engineering Industries Federation of Southern Africa (Seifsa) on Thursday called for a judicial enquiry into Eskom’s business and declared its intention to make submissions to the National Energy Regulator of South Africa (Nersa) against the 25.3% electricity tariff increases requested by the power utility.

Representatives of the National Union of Metalworkers of South Africa (Numsa), the Metal and Electrical Workers Unions of South Africa (Mewusa), Solidarity, the South African Equity Workers Association (SAEWA) and Seifsa met in Johannesburg to consider the implications of Eskom’s proposed tariff hike for the sector and for the country’s economy.

Numsa deputy-general secretary Karl Cloete said the purpose of the meeting was to bring together the metal sector unions and Seifsa on the basis that South Africa was facing a national energy crisis that negatively affected workers, employers and communities.

He stated that, as the metals and engineering industry, together with the mining industry, contributed about 25% of the country’s gross domestic product, it was necessary for industry players to come together to develop an industry approach to the energy crisis and Eskom’s application to Nersa for further tariff hikes.

“We cannot be quiet when we see serious problems in Eskom and its inability to deliver on its mandate to industry and communities. The Eskom approach to the energy crisis is a short-term intervention void of sustainable solutions. Nothing that [Eskom acting CEO] Brian Molefe has said demonstrates to us that we will turn a corner,” said Cloete.

The trade unions and Seifsa would, on June 23, make submissions and representation as to why Nersa should not grant Eskom’s application for further tariff hikes. This would be accompanied by demonstrations outside the public hearing venues.

Cloete stated that next week’s public hearings were an opportunity to convey the viewpoint of workers and employers and to shape public discourse.

“We asked employers and Seifsa to allow workers a 30 minute picket and demonstration in various workplaces across South Africa as part of the programme of action to show that we cannot afford the proposed increases that Eskom wants,” he said.

Meanwhile, he further pointed out that there were too many unanswered questions around the electricity crisis, as well as assumptions that Medupi and Kusile would be commissioned on time.

Unions were also concerned with the buying, cost and pricing of diesel and questioned whether Eskom was using an efficient model in this regard.

SAEWA Gauteng chairperson Moses Thulo added that it was unclear what the real issues were at Eskom, adding that, “all we see are golden handshakes”.

Mewusa general-secretary Edward Thobejane stated that the industry was under attack, as union members were working short hours as a result of the situation at Eskom.

“We are of the opinion that Eskom and government neglected the situation from the start and did not come up with a plan to monitor the situation, therefore, citizens are struggling. Poor workers and communities will not be able to afford the increment on tariffs. The African National Congress must come to the party and rescue the situation,” he said.

Solidarity metals and engineering and communication head Marius Croucamp stated that there was serious concern as there were a “record number of retrenchments”, as well as business rescue processes in the metal industry, owing to the electricity supply challenges.

“Eskom is being managed from crisis to crisis. We need a transparent look at what is going on in Eskom,” he asserted.

MAINTENANCE PLAN UNCERTAINTY
Further, the unions pointed out that Eskom was unclear on its maintenance plans and demanded answers to enable the country to find better solutions to the energy supply problems.

“The question of the maintenance plan on all fronts is uncertain. We have never had clear answers on what really constitutes Eskom’s maintenance plan. We cannot accept that since 1996 we have been living with a crippling situation in Eskom. We cannot be confident of change in 2015 or 2018 or that Eskom has a plan to resolve the problem,” Cloete stated. 

He added that Molefe’s shift from Transnet to Eskom could not be trusted as a viable option to ensure that the power utility meets its obligations to provide electricity.

He called on the South African public to take ownership and demand what needed to be fixed in Eskom.

The trade unions would work with employers in the metals, engineering, iron and steel industries to undertake research and analysis and provide alternatives for what they believed was not represented in Eskom’s short-term solution to the problems.