Cosatu has called for immediate relief of high electricity prices for companies to avoid the continuing jobs bloodbath during its bilateral meeting with the ANC.
The union federation held its regular meeting with the ANC on Monday to discuss the state of the economy and the alliance.
Cosatu has previously warned that the relentless electricity price hikes have led to the closure of several smelters, with the latest alarm being sounded by resources giant Glencore.
The federation said the high cost of electricity will see thousands of workers lose their jobs, with more being lost downstream and ghost towns will be created.
Cosatu called on the ANC-led government to act decisively to avoid further job losses.
In January, the National Energy Regulator of South Africa approved Eskom’s tariff increases of 12.74% for 2025/26, 5.36% for 2026/27 and 6.19% for 2027/28.
Nersa said Eskom submitted its revenue application for these years, requesting R445bn, R495bn and R536bn respectively. This means that based on Eskom’s application, the proposed standard tariff increases were projected at 36.15%, 11.81% and 9.10% for the three years.
At the time, Nersa said it recognised the challenges faced by consumers and the importance of ensuring that electricity remained affordable while securing Eskom’s financial sustainability.
Eskom is struggling because half of its consumers don’t pay for the electricity they consume. So you have municipal debt owed to Eskom having doubled in the last five years from R40bn to R95bn and that is not sustainable.
— Cosatu parliamentary coordinator Matthew Parks
Cosatu parliamentary coordinator Matthew Parks confirmed the meeting discussed relief for companies from the high electricity costs, adding that this was a crisis. He said Cosatu was holding meetings with Glencore.
“You need to find some way of immediately relieving the price of electricity for these companies and you need to look long term at the leakages of finances at Eskom. Eskom is struggling because half of its consumers don’t pay for the electricity they consume. So you have municipal debt owed to Eskom having doubled in the last five years from R40bn to R95bn and that is not sustainable.
“We have done the Eskom relief package once, we can’t do that every few years, so we have to deal with the financial leakages which includes a move towards prepaid.”
Parks said Cosatu plans to use the medium-term budget policy statement in November to address the economic challenges and ramp up funding for industrialisation programmes.
Cosatu’s meeting with the ANC was held as the DA announced its economic inclusion for all bill, which was immediately rejected by the ANC and Cosatu.
The DA said the bill seeks to amend the Public Procurement Amendment Act of 2024, to repeal all race-based preferential procurement provisions and replace them with a real empowerment system that targets poverty as the proxy for disadvantage instead of race.
It said the bill will create a public procurement system that encourages genuine economic empowerment by offering incentives for tangible developmental outcomes such as job creation, poverty reduction, skills enhancement and environmentally sustainable practices.
“The bill removes provisions for set-asides, pre-qualification criteria, subcontracting conditions and local content designations, replacing these measures with an outcomes-driven system centred on inclusive development and value-for-money procurement.”
The transitional measures in the bill include the winding down of the BEE Commission over 12 months and the systematic removal of references to BEE across legislation. To give effect to this change, the bill empowers the minister of trade, industry and competition to develop a simplified preference points system based on a supplier’s demonstrated contributions to inclusive development and social impact.
The DA said its alternative scorecard comprises three components ― value for money, economic inclusion and disqualification criteria.
It said despite growing evidence of BEE’s failures, the ANC continues to defend it due to their vested interests.
“One only needs to look at their president and much of the senior leadership to realise this. That is why the DA is using its position in the Government of National Unity and parliament to oppose this harmful policy and promote genuine empowerment that uplifts the disadvantaged, unlocks opportunities and delivers prosperity.
“The DA may be in coalition with the ANC in government, but that doesn’t mean we need to agree with them all the time. We are in the GNU to represent the interests of all South Africans, and we will not relent. As a party that cares deeply for our country and its people, it angers us to see how the ANC has used state resources to line its pockets instead of delivering much-needed services and upliftment to the people,” the DA said.
Parks said Cosatu also discussed a path forward for its tripartite alliance with the ANC following the decision by the South African Communist Party to contest elections on its own.
He said Cosatu had long decided to engage with the ANC and the SACP to find ways to resolve tensions between the two allies.
“We are clear that we want the alliance with the ANC and we want the alliance with the party on their different complementary roles so we are not choosing sides. We have a deep fear of further fragmenting and weakening the progressive movement.
“We have seen it in the past two decades. We have shed elements in every elections and that is why we are in a 40% crisis,” Parks said.
He added Cosatu would continue to engage the SACP to ensure the alliance contests elections as one component.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.