Eskom offers voluntary exit packages to managers

The power utility said that the voluntary cash separation packages would be opened to managerial-level employees in non-core positions.

FILE: Eskom's headquarters at Megawatt Park in Johannesburg. Picture: Reinart Toerien/EWN

JOHANNESBURG - Eskom is offering managers voluntary exit packages as the parastatal looks to cut its bloated workforce.

The utility's board has allocated a budget of R400 million for the retrenchment plan.

Eskom is grappling to service the R450 billion its racked up in debt while its headcount reportedly fell by about 4% last year to 46,000 employees.

The power utility said that the voluntary cash separation packages would be opened to managerial-level employees in non-core positions.

Workers aged between 60- and 62-years-old would be allowed to take up the offer irrespective of the role they played in the company.

Eskom has been struggling to stay afloat due to a bloated wage bill, among other financial challenges.

The decision to offer separation packages was being viewed by some as another sign of wide-scale layoffs in the workforce.

While the board was fully behind the move, it’s unclear if labour unions, who have historically come out strongly against wider staff cuts, were consulted.