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Cosatu against proposal to split Eskom into 3 entities

The trade union federation has warned doing so would not solve the struggling utility’s governance and debt problems.

FILE: Eskom's Megawatt Park offices in Sunninghill. Picture: EWN.

JOHANNESBURG - The Congress of South African Trade Unions (Cosatu) says it does not support a proposal to split up Eskom into three different entities.

The trade union federation has warned that doing so would not solve the struggling utility’s governance and debt problems.

The proposal to split Eskom into three separate firms was reportedly made by a task team appointed by President Cyril Ramaphosa.

Cosatu’s first deputy president Michael Shingange says any unbundling would result in retrenchments.

“When you unbundle and turn debt into equity, as they say, we [Cosatu] view that as part of retrenchment. Even if you don’t pronounce that you’re going to restructure or privatise, we view it as privatisation because you are going to invite private ownership.”

(Edited by Zamangwane Shange)

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