South Africa's Eskom Consulting Executives on Possible Job Cuts
(Bloomberg) -- South Africa’s state-owned power utility has started consultations about possible job cuts for executives as the cash-strapped company looks to rein in soaring costs despite stagnant electricity output.
Eskom Holdings SOC Ltd.’s board has approved 60 days of consultations that need to precede potential job cuts under section 189 of the country’s Labour Relations Act, the Johannesburg-based company said in an emailed statement Wednesday.
The utility provides more than 90 percent of South Africa’s power and is the biggest recipient of government guarantees after years of management and financial difficulties. It is contending with weak demand, delinquent municipalities that don’t pay their bills and graft allegations that have made investors wary of the company. Plans to reduce its workforce of 47,000 to help improve the utility’s finances have been met with opposition from labor unions.
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