Eskom is moving full steam ahead with its unbundling into Transmission, Generation and Distribution divisions which will be separated from the ailing power utility and housed in separate, wholly owned legal entities.

In a letter to the National Union of Mineworkers (NUM), the National Union of Metalworkers of South Africa (Numsa) and Solidarity, the SOE says consultations under the Restructuring Consultative Framework (RSF) are now over and it is moving ahead with the next phase for the creation of the the National Transmission Company of South Africa (“NTCSA”).

Effectively, Eskom is dotting the Is and crossing the Ts of the legal process. Business Maverick understands the consultations are just that – they are not negotiations. 

“Eskom has been directed by government and is expected to meet requisite timelines for the legal separation of the Transmission division. Given that consultations have been exhausted at the RCF, Eskom will now proceed to the next phase of the separation of the Transmission division i.e. engagements at the Transmission Forum and engagements with employees,” the letter says. 

Business Maverick has obtained a copy of the letter, which is dated 27 October and signed by Elsie Pule, the group executive for human resources. 

“Eskom will ensure that the rights of its employees are respected and that it acts in the best interest of all stakeholders, including the employees,” it says.

To that end, the letter notes:

• The employees’ terms and conditions of employment would remain the same;
• The continuity of the employees’ tenure would be recognised;
• All collective agreements would also remain in force; and
• There would be no retrenchments related to the transfer and for a further 12 months after the date of transfer.

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“Eskom has ensured that it has fully addressed and answered the questions relevant to how employees will be dealt with during the unbundling of the Transmission division. Documentation relevant for the consultation process was also provided,” it says. 

Read in Daily Maverick: “The collapse of old king coal: Eskom’s short but brutal road to ruin”

There has been union discomfort with the unbundling, which among other things is seen as necessary to allow the transmission and distribution divisions to focus on their own roles without getting sucked into the many challenges and constraints that the generation unit faces.  

Meanwhile, rolling blackouts continue apace, shredding economic growth and job creation and making life miserable for millions of South Africans. DM/BM