Trade unions at South African power utility Eskom have reached a new three-year wage agreement, providing for a 7% pay increase annually. The negotiations involved the National Union of Mineworkers (NUM), the National Union of Metalworkers of South Africa (NUMSA), and Solidarity, and began in April as the current wage deal was set to expire at the end of the month. This development occurs amidst electricity cuts implemented by Eskom, causing households and businesses to face up to 10 hours of blackouts per day due to breakdowns in the company's coal-fired generating units.

Eskom's acting CEO, Calib Cassim, expressed satisfaction with the collective agreement, stating that it would contribute to addressing the pressing challenges faced by the utility. In addition to the wage increase, the deal includes a 7% rise in housing allowances for non-managerial workers over the three-year period. It also features a taxable payment of 10,000 rand ($545.03) in each of the first two years of the agreement.

Initially, the unions had requested wage hikes ranging from 9.5% to 12%. NUM and NUMSA had initially demanded a 15% pay increase, while Solidarity sought 10.1%. Following four rounds of negotiations, an amicable agreement was reached that satisfied all parties involved. The collective agreement is expected to remain in effect until June 30, 2026, according to the confirmation provided by NUM.