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The Commission for Conciliation, Mediation and Arbitration (CCMA) has ordered Eskom to pay accrued special allowances due to its employees working at remote power plants, Solidarity sector coordinator for the electricity sector Tommy Wedderspoon said Wednesday.
The benefits refer to medical benefits and the education of the children of the employees in the boarding schools. According to Wedderspoon, they affect around 1,000-2,000 employees who were encouraged through assignments to work at these remote power plants, which in some cases are not located near a city.
He said the allowances had been paid for for many years before Eskom unilaterally terminated them in November 2017 without Eskom having followed the required consultation process. The payments were part of the terms of service.
Because the utility company refused to reinstate payments, Solidarity brought the matter to the CCMA, first through conciliation and mediation and then through arbitration. In terms of the ruling, Eskom will have to pay the outstanding amounts owed from the end of 2017.
Wedderspoon said the CCMA ruling stipulates that conditions of service under the original employment contracts must also be reinstated immediately. “We welcome the ruling and the fact that Eskom is now forced to take responsibility for its actions,” Wedderspoon said.
“It would appear as if major companies and institutions like Eskom believe that their employees and unions would not realize that they are making changes to certain conditions of service and that they could therefore get away with such illegal action. However, we have shown that all conditions of service, whether of a negligible nature or of real importance, are important and illegal changes will not be tolerated. ”
The ruling in favor of Solidaridad was given on December 8. Eskom said in response to a query on the matter that it took note of the award made by the CCMA. “We are currently studying the award and consulting with our legal advisors. We will evaluate our legal options and make a decision on how to proceed. All our legal rights are reserved. “
To update: December 30, 2020
This story has been updated with comments from Eskom.
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