Will a wage hike derail Eskom’s recovery?

Power utility, Eskom and unions have been at the wage negotiation table since 10 May. Today Eskom presented unions with two options, the first option involves a 7.5% wage increase for the first year, 6.5% for the second year and 6.25% in the third year. Option two involves, 7% for this year, 7% for the next year and 6.5 in the third year with housing still linked to CPI. Trade union, Solidarity has accepted the second option while NUM and Numsa are yet to decide. Khulu Phasiwe, Spokesperson for Eskom joined Business Day TV on the line to discuss the cost implications of these wage increases on the company.