Solidarity ready to challenge Nedlac plan to have PIC save Eskom

The union has described the plan as irrational and immoral, stating that Eskom was a too high risk to invest in.

FILE: Eskom building. Picture: EWN

JOHANNESBURG - Trade union Solidarity said it was ready to approach the courts to challenge any attempts by the National Economic Development and Labour Council (Nedlac) social partners to dip into workers’ pensions and savings to rescue Eskom.

The union has described the plan as irrational and immoral, stating that Eskom was a too high risk to invest in.

The plan, which is being finalised at Nedlac, proposes that the Public Investment Corporation (PIC) should invest R250 billion in Eskom through bonds and equity.

Solidarity, which has relied on litigation to overturn government decisions for years now, said it was waiting for the Eskom plan to be adopted at which point its lawyers would be ready to file court papers to halt the process.

Head of Solidarity’s research institute Connie Mulder said that not only was Eskom a bad business case for investment, but the decision would set a bad precedent.

“This is not something you can go too high risk, this is the money of normal people that they want to trust the PIC with.”

Eskom is struggling to service R450 billion in debt.

On Monday, President Cyril Ramaphosa said he was hopeful a report on the scheme announced by the Congress of South African Trade Unions and other labour federations would be ready by the end of March.