Eskom Secures Three Year Wage Deal with 7% Annual Hikes Despite NUMSA Rejection

Eskom secures labor stability with a 7% annual wage hike for 2026-2029. Learn how this double-inflation deal impacts workers and electricity tariffs.

By: AXL Media

Published: Apr 17, 2026, 7:40 AM EDT

Source: Information for this report was sourced from BusinessTech

Binding Multi Year Agreement Reached Despite Union Deadlock

Eskom has formally concluded its 2026 wage negotiation cycle, establishing a three year framework for labor costs. While the National Union of Metalworkers of South Africa (NUMSA) rejected the 7% annual increase in favor of an 8% demand, the agreement was ratified by the National Union of Mineworkers (NUM) and Solidarity. Because these signatory unions represent more than 75% of the employees within the bargaining forum, the deal is legally binding for all workers, including those affiliated with the dissenting union. This conclusion averts potential arbitration and demonstrations that had been threatened during the negotiation process.

Strategic Stability Prioritized Over Annual Bargaining Volatility

The utility has emphasized that maintaining a multi year framework is essential for establishing a predictable operating environment. By securing labor certainty through 2029, Eskom aims to reduce the volatility typically associated with annual bargaining cycles. According to management, this stability is a prerequisite for maintaining recent gains in overall system performance. The agreement is viewed as a foundational element in retaining the necessary technical skills required to reinforce the national grid’s reliability over the medium term.

Wage Increases Outpace Inflation Benchmarks and Reserve Bank Targets

The 7% annual hike represents a significant gain for employees, as it is more than double the current inflation rate of approximately 3%. Even with projected temporary shocks from the United States war against Iran, which could push inflation toward 4.5%, the wage deal remains comfortably above the South African Reserve Bank’s long term target of 3%. This follows a period of substantial growth in staff expenditure, with the 2025 financial year reporting an average cost of R1.026 million per employee, a 12.4% increase over the previous year.