• Eskom to bargain with workers over wages in effort to avoid major power outages

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      Patrick Lavery

      Combustion Industry News Editor

In an update on a story previously covered in the Combustion Industry News, it seems likely that South Africa’s state-owned utility Eskom will come to a wage agreement with a number of unions and prevent the prospect of strikes that would lead to total system blackouts. With inflation running at about 5%, Eskom workers had had their wages frozen as the company tried to deal with its financial problems. However, under new South African President Cyril Ramaphosa there is now the prospect of a 7% rise in wages, just under half the 15% demanded by unions. This compromise is part of a larger effort by Mr Ramaphosa to restructure and modernise Eskom, making it a more attractive organisation to lend to, after commercial banks suspending lending to the utility.