The National Union of Mineworkers (NUM) has voiced its opposition to the proposed transfer of transmission assets to an independent Transmission System Operator.
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The National Union of Mineworkers (NUM), currently at loggerheads with Eskom in a wage negotiation standoff, has voiced its opposition to the proposed transfer of transmission assets to an independent Transmission System Operator (TSO).
The union is calling for urgent labour consultation before any further steps are taken.
The union said it had noted the directive issued by President Cyril Ramaphosa in his State of the Nation Address (SONA), instructing that the assets of the National Transmission Company South Africa (NTCSA), a wholly owned subsidiary of Eskom Holdings, be transferred to a fully independent TSO outside of Eskom Holdings. NUM argues that the Energy Regulation Amendment Act does not provide an explicit empowering provision for such an end state of ownership.
Citing inadequate labour consultation, NUM said that when NTCSA was separated from Eskom in July 2024, organised labour was not meaningfully consulted. The union subsequently lodged formal disputes with Tokiso Dispute Settlement, which remain unresolved and are currently at the appeal stage.
“The announcement of a further and far more significant step — transferring strategic assets to an entity outside the Eskom group — raises the stakes considerably. NUM insists that structured and substantive engagement with organised labour must take place before the National Energy Crisis Committee (NECOM) finalises any proposals,” said NUM’s Energy Sector Coordinator, Khangela Baloyi.
Baloyi said labour is calling for written, binding guarantees that no employee will be worse off as a result of the restructuring. Employees currently within NTCSA were transferred on existing Eskom Holdings terms and conditions and remain members of the Eskom Pension and Provident Fund (EPPF).
“Moving assets to a fully independent TSO creates unresolved questions regarding the continuity of pension arrangements, medical aid, housing allowances and other conditions of service,” he said.
NUM also objected to financial risks being shifted onto workers. According to Eskom CEO Dan Marokane, transaction advisers have indicated that the proposed transfer could trigger cross-default provisions affecting approximately R400 billion in debt exposure.
The union noted that Eskom Holdings would require compensation for the transfer of transmission assets, estimated at approximately R100 billion — bringing the total potential exposure to about half a trillion rand in the quest to establish an independent TSO.
“These financial realities highlight the scale of risk and complexity involved. Any instability arising from a poorly managed transition — including debt restructuring, compensation funding or tariff impacts — will ultimately affect employment levels, operational capacity, energy security and affordability for the public,” Baloyi said.