President Cyril Ramaphosa on Thursday during his State Of the Nation Address announced dramatic steps to remodel Eskom by splitting it into three state-owned entities dealing with generation, transmission and distribution. The president also announced that Eskom would receive financial support from the state.
Eskom has been recording loses for the past financial periods, and they are in debt for the tune of more than R400 Billion. Eskom Chief Executive Officer - Phakamani Hadebe noted at a Mining Indaba discussion this week that Eskom is having to get debt in order to service debt.
The National Union of Metalworkers of South Africa (Numsa) announced that hey will be embarking on a strike next week. This comes after the president's announcement to unbundle Eskom in his State of the Nation Address.
As Numsa we are very clear that we oppose the decision by the president to unbundle Eskom. It is not an interest of the community at large and certainly not for the working class majority and the poor. This is nothing more than a privatisation to the backdoor. Every time privatisation takes place, in most cases it result in massive job loses and result in higher costs for the consumer.— Phakamile Hlubi-Majola, National Spokesperson - NUMSA
We know how Eskom arrived at this point. There are several issues that brought Eskom to collapse. One of many reason is corruption which is taking place under the watch of the ANC government as the shareholder of Eskom. Not even one cent has been recovered from the looting and corruption that has taken place and it hasn't been stopped.— Phakamile Hlubi-Majola, National Spokesperson - NUMSA
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This article first appeared on CapeTalk : Numsa to embark on a strike over the president's announcement to unbundle Eskom