JOHANNESBURG, Gauteng — The National Union of Mineworkers (NUM) is preparing to take its fight against the Eskom unbundling plan to the Constitutional Court, echoing warnings from Eskom Chairperson Mteto Nyati that rushing the utility’s restructuring could severely threaten the national economy.
Following a national executive council meeting held from August 5 to 7, the union held a media briefing to outline its fierce opposition to President Cyril Ramaphosa’s late-July approval of the Eskom restructuring task team’s phase one report. The NUM argues that the proposed separation of the state-owned entity jeopardizes jobs, working conditions, collective bargaining rights, and public ownership.
NUM President Philip Vilakazi emphasized the union’s alignment with the Eskom board’s leadership regarding the pace of the reforms.
“With this rush, we agree with the chair of the board to say there is no need for us to rush,” Vilakazi stated. “We have got our own economy to nurse. We have got our own people to feed.”
Financial Risks and “Killing” the Utility
At the heart of the dispute is the proposed transfer of National Transmission Company South Africa (NTCSA) assets to an Independent Transmission System Operator (TSO). The union warns that transferring these assets—which represent approximately R100 billion on Eskom’s balance sheet—too soon will severely weaken the utility’s liquidity, trigger change-of-control provisions with creditors, and ultimately lead to the “death of Eskom.”
Khangela Baloyi, the NUM’s Energy Sector Coordinator, defended Mteto Nyati’s cautious approach, describing the chairperson as a “technocrat” who deeply understands the financial and legal implications of asset transfers. Baloyi questioned the government’s financial strategy, asking where the National Treasury would secure the funds to manage the fallout of a weakened Eskom.
“Why do you want to fix a company that is not broken?” Baloyi asked, pointing out that Eskom is currently operating at a 65% Energy Availability Factor (EAF), a significant improvement from 55% in 2023. He argued that politicians should “leave Eskom alone” and allow technocrats to manage the entity, noting that the mandate to manage the power utility lies with the Department of Electricity and Energy, not the Presidency.
According to Baloyi, the end goal of unbundling the company into three separate components is ultimately privatization. He stressed that Eskom’s actual challenges are not structural, but operational and financial: municipal debt, the cost of primary energy, the cost of Independent Power Producers (IPPs), and decreasing electricity sales.
Awaiting the Legal “Trigger”
The NUM is currently in consultation with its legal team to formally challenge the constitutional validity of the President forming a task team to restructure a state-owned company.
Addressing questions regarding the timing of the litigation, Baloyi explained that the union had previously attempted to challenge the restructuring through independent dispute resolution institutes and direct letters to the Presidency. However, they were legally advised to wait for a concrete “trigger” before approaching the courts. The release of the task team’s phase one report now serves as that trigger.
Safety Concerns and Mining Sector Retrenchments
Beyond the energy crisis, the NUM used the August media briefing to highlight severe safety concerns within the mining sector, particularly regarding a rise in fatalities among female mineworkers.
Masibulele Naki, the NUM’s National Secretary for Health and Safety, reported that the North West and Kimberley regions are currently leading in mining fatalities. Naki detailed tragic recent incidents, including a female worker who fell to her death in a shaft, and others who lost their lives while working on underground stopes and trimming sections.
“In all areas of underground, females are exposed to risk, are exposed to death,” Naki warned, emphasizing the urgent need for improved safety protocols for women in the sector.
The union also expressed deep concern over mass retrenchments in the diamond mining sector. The NUM maintained a firm stance that mineworkers should not be forced to carry the burden of corporate mismanagement while executive profits and bonuses remain protected.
As the NUM prepares to file its court papers in the coming weeks, the standoff over the future of South Africa’s primary energy provider continues to escalate, with the union promising to fight the restructuring process all the way to the highest court in the land.
