Finance: Trade Union Questions Rise in Eskom’s Expenses
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According to Solidarity, it does not make sense for Eskom to claim in its presentation to NERSA that its primary costs (mainly coal) have rocketed by 81% from the 2007/2008 financial year to the 2009/2010 financial year. “The company is also claiming that its personnel costs rose by 40% during the same period. Last year employees received a salary increase of less than 10%. Meanwhile, the company’s total number of employees has dropped from 35 404 to 35 217 over the past year. Therefore, it does not make any sense that the company’s personnel costs could have grown by 40% over two years, except if they plan on giving a salary increase of almost 30% this year,” said Dirk Hermann, deputy general secretary of Solidarity.
Eskom also argues in its presentation that “other costs” will increase by 156%. “Eskom will have to explain how all these expenses could increase so sharply and why the company is not managing to keep its expenses under control,” Hermann said.
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