Home Press Releases Archived 2013 Sactwu submission to NERSA oposses Eskom electricity hike
Sactwu submission to NERSA oposses Eskom electricity hike PDF Print E-mail
Thursday, 31 January 2013 13:33


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The Southern African Clothing & Textile Workers (SACTWU) has today submitted representations at the Johannesburg NERSA hearings into Eskom’s application for massive electricity tariff hikes.
Our submission rejects Eskom’s application.

We have conducted a wide-ranging survey in January 2013, amongst 93 different companies, employing about 20 400 workers, in the clothing, textile, leather and footwear (CTFL) sectors. The survey was to evaluate the anticipated impact of Eskom’s proposals on our industry. We have, to date, analysed the survey results for 73 of these surveyed companies, employing about 16 000 workers.

The key outcomes are that:
 

  • electricity is a significant cost component in the total monthly operating cost of our industry;
  • 75% of the surveyed companies indicated that the Eskom proposals will negatively affect production costs;
  • 67% of the surveyed companies will down-size their operations and retrenching workers, should the Eskom proposals be granted;
  • 55% of companies will consider closing, should the tariff increases be passed;
  • for over 80% of the surveyed companies, electricity is supplied by municipalities, which levy an additional premium on top of the Eskom tariffs.


We have begun to poll our members. It comes as no surprise that they are very angry about the potential negative impact on their job security and increased social hardship. Clothing workers are already the lowest paid in the whole of the domestic manufacturing industry.  For example, the legislated starting minimum wage for a clothing machinist in an area like Newcastle is only R369 per week. Our internal research shows that a Newcastle worker spends at least R70 per week on electricity.

SACTWU rejects the Eskom proposals as insensitive to the poor, endangers sustainability in the CTFL industries, just at time as it begins to stabilise.

A copy of our summary submission to NERSA is available HERE
 

Issued by

Andre Kriel

SACTWU

General Secretary

 

If further comment is required, kindly contact Simon Eppel on cell number 0836523559 or email queries to Nazmia Leite on This e-mail address is being protected from spambots. You need JavaScript enabled to view it <mailto: This e-mail address is being protected from spambots. You need JavaScript enabled to view it >