The Congress of South African Trade Unions (COSATU) applauds the revised electricity tariff relief offer by Eskom for embattled ferrochrome producers, Samancor Chrome and Glencore-Merafe Chrome Venture. The 62 cents per kWh charge responds to the dire impact of the increasingly unaffordable price of electricity upon these heavy intensive users by providing lower tariffs to enable their stabilisation and turnaround as well as reopening previously closed smelters.
This progressive intervention resolves the imminent threat of the companies’ Section 189 retrenchments which would have seen thousands of jobs lost. Once approved by the National Electricity Regulator of South Africa (NERSA) it will provide welcome relief to workers at these companies whilst simultaneously enabling them to reopen previously mothballed smelters. This can see the creation of 11 400 direct and over 100 000 indirect jobs along the value chain and in host communities. It is critical these remaining processes be expedited and concluded, including the immediate withdrawal of the Section 189 retrenchment notices.
COSATU applauds the commitments by the parties to find solutions and provide space for further engagements on a sustainable permanent solution for a long festering crisis that has seen many smelters close, workers retrenched and communities plunged into poverty. We applaud the tireless efforts of the sectors’ unions, in particular the National Union of Mineworkers and the National Union of Metalworkers and Solidarity; Eskom, the African National Congress led government, and especially the Presidency and the Minister for Electricity and Energy, Dr. K. Ramokgopa, and the affected companies.
Similar interventions are now urgently needed for Mozal and Transalloys to save these equally critical companies, jobs and value chains.
Key to finding a sustainable long-term solution is to provide Eskom the necessary support to plug its many financial holes, from corruption to wasteful expenditure, cable theft and infrastructure vandalism, and most critically to ensuring that all electricity consumers are moved to pre-paid meters. This needs to include a comprehensive package of interventions to arrest the crisis of municipal debt owed to Eskom currently over R100 billion and increasing at an alarming rate of R20 billion per annum.
Eskom cannot be sustained nor end its dependence upon unaffordable above inflation tariff hikes, unless all consumers pay for electricity consumed. Improved daily revenue will enable Eskom and municipalities to increase the allocation of free electricity to indigent households, lower tariffs whilst ramping up maintenance and investments in new generation, transmission and distribution infrastructure.
Whilst welcoming this jobs-saving agreement it is sacrosanct that all parties honour their agreed obligations, in particular the Samancor Chrome and Glencore-Merafe Chrome’s commitment to cancelling retrenchments proceedings. We cannot afford to see a single worker added to the already dangerously high unemployment rate of 41.1%.
Key to unlocking the economy and achieving the 3% growth rate necessary to slashing unemployment, is an affordable electricity tariff regime. Working- and middle-class families need to see the price of electricity become affordable once again. Lower prices will help workers take care of their families’ needs and free money to stimulate economic growth. This is a matter that requires urgent prioritisation by the most senior leadership of government and industry. More so given the current global economic chaos and the skyrocketing international oil and fuel prices.
Issued by COSATU
Matthew Parks (COSATU Parliamentary Coordinator)
Mobile: 082 785 0687
Email: matthew@cosatu.org.za