A pact between South Africa’s government, labour unions and business to cut Eskom’s debt won’t include a pledge to use the pensions of state workers as had been initially proposed.
Labour and business are pushing the government to find a way to utilise an unemployment fund with assets of about R180-billion to fight the effects of the coronavirus outbreak.
Cosatu expects a plan that it’s proposing to save Eskom from its debt burden to be ready within weeks, said the labour federation’s parliamentary coordinator.
The leadership of the ANC called an emergency meeting to discuss the government’s plans to curb its wage bill – a move that has angered its trade union allies.
The bold proposal by Cosatu to relieve Eskom of close to 60% of its debt using pension money may be presented by President Cyril Ramaphosa in next week’s state of the nation address.
Cosatu, a key ruling party ally, is pushing senior members of government to consider its proposals to rescue the state’s indebted power utility before next month’s budget.