Dawie Roodt argues striking Eskom workers already paid far too much

[Nerfherder]

Striking Eskom workers are paid far too much — Economist

Eskom workers participating in a wage-related strike that has plunged South Africa into stage 6 load-shedding are already getting paid too much. Efficient Group chief economist Dawie Roodt has said.

Roodt was speaking to Sunday newspaper Rapport regarding the striking workers' complaints about being paid too little.

*Me sitting in the dark all week*.... yep.

 

[hj007]

Of course Eskom workers can be fired, Even government workers can be.

Which SOEs were your friends not fired from? And yes, not getting paid is one of the sanctions that can be given, not because it's not possible to fire the employee.

Strange he mentions the protections - I was wondering more what those protections are?

Denel. Just didn't get paid. Should've fired/down-sized the staff 2 decades ago - warehouses full of machines doing nothng, no contracts. Instead they just kept the employees and costs and eventually ran out of money. Then still had all the staff, but didn't pay salaries. Then they paid a bit, but haven't bought spare parts, so staff have very little to do once they've cannibalized what parts they can find.

 

[Nerfherder]

R14,000-19,000 for general workers working on national infrastructure. Don’t make me laugh at how embarrassingly low this is. Don’t know what this economist think they should be paid but clearly he’s more on the side of minimum wage.

Just goes to show you how out of touch he is. Just because everyone in SA is being short changed in their employment situation doesn’t justify paying people working at national infrastructure sites a pittance. I understand why the strike happened legal or not.

R20,000-25,000 would be more realistic for a general worker position to ensure the employees are more happy to be at work and to do a good job.

Think of it this way. How well would you do your job if you get a kick in the teeth every day you go to work and every payday?

Get embarrassed all you want, its an organisation that has insurmountable amount of debt and not currently functioning.
They are lucky to get any salary.

Any other organisation would have folded long ago.

 

[mypetcow]

Yes we are talking general workers here. Those are the people who serve tea and clean the bathroom. Why does it matter where they are employed rather than what they do.

That’s one of the advantages of unions. They literally ensure that their members are paid a fair wage that is also inflation adjusted. Perhaps that is the realistic rate that people who serve tea and those who clean should be paid….and that everyone else in that position is literally being underpaid.

I mean if you’re earning R20k/month in your IT office job and are jealous of people who serve tea or clean at Eskom either you should look for alternative employment or you should perhaps considering joining a union so that they can fight for better employment conditions for you.

 

[Neptuner]

That’s one of the advantages of unions. They literally ensure that their members are paid a fair wage that is also inflation adjusted. Perhaps that is the realistic rate that people who serve tea and those who clean should be paid….and that everyone else in that position is literally being underpaid.

I mean if you’re earning R20k/month in your IT office job and are jealous of people who serve tea or clean at Eskom either you should look for alternative employment or you should perhaps considering joining a union so that they can fight for better employment conditions for you.

Thought IT professionals were raking in the moola. Sure those BSc in CS or IT graduates / professionals must be highly offended by 20k/month

 

[mypetcow]

Thought IT professionals were raking in the moola. Sure those BSc in CS or IT graduates / professionals must be highly offended by 20k/month

R14,000-19,000 for general workers working on national infrastructure. Don’t make me laugh at how embarrassingly low this is.

It’s embarrassingly low … for general workers working on national infrastructure.

Have a closer look at what I wrote

 

[Neptuner]

It’s embarrassingly low … for general workers working on national infrastructure.

Have a closer look at what I wrote

But the assumption is this is unskilled labour with a minimum of matric? or what are we talking about here?

I know its not fair to assess based on individuals but I have seen matriculants being trained in a few industries and ending up earning more than engineers. I guess this is more the exception than the rule.

Here again 14k-19k is not exactly a salary but its more than most South Africans without tertiary education earn.

But the sad reality in South Africa is that most employers under pay their workers this includes trained professionals with degrees. So I understand why so many South Africans are disgruntled about the whole affair.

 

[HunterNW]

It’s embarrassingly low … for general workers working on national infrastructure.

Have a closer look at what I wrote

What does a general worker do ?

 

[die_koos]

The good old ANC and Union Clusterf@ck.

The Unions prop up the ANC with votes, so the ANC cannot afford to antagonize them.

Another thing is that the unions are still stuck in their militant apartheid era mindsets. Pre 1994 there was cause to burn **** and throw your toys every time you don't get a raise because you were being exploited. Now, you are in a free economy where you will not be paid more than you are worth... if you don't like it upskill yourself and find a job that pays better. (I know what the unemployment stats look like in SA, but the principle still holds)

It's very telling that they demand an increase to cope with inflation - your employer has no obligation to cover your escalating costs of living, your employer only needs to pay you as much as is needed to keep you from leaving. Again it points to the pre 94 way of thinking on the side of the unions that seem to think that the "bosses" are swimming in money and they are just being stubborn for not paying everyone a million ZAR a month.

 

[TheChamp]

But the assumption is this is unskilled labour with a minimum of matric? or what are we talking about here?

I know its not fair to assess based on individuals but I have seen matriculants being trained in a few industries and ending up earning more than engineers. I guess this is more the exception than the rule.

Here again 14k-19k is not exactly a salary but its more than most South Africans without tertiary education earn.

But the sad reality in South Africa is that most employers under pay their workers this includes trained professionals with degrees. So I understand why so many South Africans are disgruntled about the whole affair.

But who are you comparing them with? They might not be educated but they are still working in a specialized environment, they might not be educated but they are still skilled and properly trained in what they do, you can't exactly compare them to a shelf packer at PnP.

 

[GrootVoet]

R14,000-19,000 for general workers working on national infrastructure. Don’t make me laugh at how embarrassingly low this is. Don’t know what this economist think they should be paid but clearly he’s more on the side of minimum wage.

Just goes to show you how out of touch he is. Just because everyone in SA is being short changed in their employment situation doesn’t justify paying people working at national infrastructure sites a pittance. I understand why the strike happened legal or not.

R20,000-25,000 would be more realistic for a general worker position to ensure the employees are more happy to be at work and to do a good job.

Think of it this way. How well would you do your job if you get a kick in the teeth every day you go to work and every payday?

In a job market with high unemployment a general worker is not a scares skill so it does not demand a high salary. You can make a argument for a living wage etc. but then a R20k p/m salary will still be considered high in SA.

Also the figure of R14 - R15k per month, is that before or after stop orders because striking workers often like to state they only get so much paid into their bank account but they fail to mention how much is deducted for the debt at the furniture, cellphone and clothing store and all the child support. You can have the nice things but first you need to provide food for the table.

One of the legacies of apartheid is that the waste majority of our pollutions is not financially educated, they can't budget or plan to save for something, debt is too easy and expectations are too high.

 

[Mista_Mobsta]

Everyone b*tching and moaning about salary increases when the real solution is to bring down the cost of living! How you ask? Simple:
Ensure that competent and incorruptible people are in charge of policy and investment decisions related to critical infrastructure such as water, electricity, transport et al. This will enable all the infrastructure investment to flow to where it's most needed whilst ensuring the infrastructure maintenance is ongoing. It's far easier and cheaper to fix than to rebuild!

Deunionise the economy, or at least remove the striking power of unions, to ensure that labor is used in a much more efficient manner. Eskom and government are a prime example of labor costs outstripping the efficiency of per-unit labor cost - the laborers are costing more than production allows for due to the unions and eventually the company/government is forced into debt to pay for salaries!
Allow all basic services (security, electricity, water etc) to be zero rated + taxable deductions to put some money back in the pockets of everyone in the country. Don't even get me started on renewed policies related to corruption.

This way, we don't need yearly inflation adjusted salaries as your cost of living stays low enough to allow everyone to purchase the basics.

 

[Neptuner]

But who are you comparing them with? They might not be educated but they are still working in a specialized environment, they might not be educated but they are still skilled and properly trained in what they do, you can't exactly compare them to a shelf packer at PnP.

The word "Skill" is opened to interpretation. Your company might train you to fulfill a certain function in their organization which according to them meets their requirements for being "skilled" for a specific task. Skill must not be mistaken for creating stability in a firm, the stable income a firm gives a general worker by employing him/her permanently must be repaid with loyalty.

As far as I know government and SOC's have tiers and levels of employment, at the bottom it's safe to say the criteria is not as rigorous and demanding in terms of qualifications, certification and experience. Eskom for one does not exist in a vacuum, therefore give a reference for associating skill with general workers? what are the industry qualifications, certifications and specific experience required for general workers?

 

[MrGray]

Boycott all the businesses directly owned in part by the NUM - i.e. Primedia (702, Cape Talk, EWN, 94.7 and KFM), Tracker, Metrofile, Vox, Emperor's Palace, Firstrand...

These are not passive shareholdings via equity funds, these are companies that have significant direct ownership by the union.

Yes, that's right, the NUM directly owns significant stakes in a slew of "for profit", capitalist enterprises via the Mineworker's Investment Trust which in turn owns the Mineworker's Investment Company which has direct stakes in these businesses. These companies must be shamed publicly and called out for their hypocrisy - e.g. EWN running articles condemning the situation at Eskom, meanwhile their biggest shareholders are the cause.

 

[konfab]

Is this article referring to salary or cost to company?

Those things are wildly different. Especially in a SOE where there are a lot of benefits.

From the horse's mouth:

. If Eskom were to grant a 12% wage increase across the board, it would cost 2.1 billion. This includes the costs of benefits such as pension, annual bonus, medical aid, overtime and leave pay for all 28 300 employees in the CBF.

https://www.politicsweb.co.za/politics/eskom-is-sacrificing-workers-benefits-and-wages--i

So medical aid, an annual bonus and pension.

 

[konfab]

The good old ANC and Union Clusterf@ck.

The Unions prop up the ANC with votes, so the ANC cannot afford to antagonize them.

Another thing is that the unions are still stuck in their militant apartheid era mindsets. Pre 1994 there was cause to burn **** and throw your toys every time you don't get a raise because you were being exploited. Now, you are in a free economy where you will not be paid more than you are worth... if you don't like it upskill yourself and find a job that pays better. (I know what the unemployment stats look like in SA, but the principle still holds)

It's very telling that they demand an increase to cope with inflation - your employer has no obligation to cover your escalating costs of living, your employer only needs to pay you as much as is needed to keep you from leaving. Again it points to the pre 94 way of thinking on the side of the unions that seem to think that the "bosses" are swimming in money and they are just being stubborn for not paying everyone a million ZAR a month.

This is what private sector HR dept don't understand either TBH. CPI has absolutely nothing to do with how much increases should be. They need to be made on two factors:
1) How much money can the company spend on increases taking into account cash, cashflow, orders and debt.
2) How much money will it take to stop the workers jumping ship?

CPI is only used by lazy HR depts who want an easy number they don't have to think about.

 

[die_koos]

This is what private sector HR dept don't understand either TBH. CPI has absolutely nothing to do with how much increases should be. They need to be made on two factors:
1) How much money can the company spend on increases taking into account cash, cashflow, orders and debt.
2) How much money will it take to stop the workers jumping ship?

CPI is only used by lazy HR depts who want an easy number they don't have to think about.

Quite right, only place CPI is useful is for the employee to determine if they are better or worse off than last year after an increase.

 

[Cube3]

What they've done now, is prove that they can now blame load shedding on strikes. real or fabricated. It's no longer the faulty equipment's fault.

 

[TelkomUseless]

R14,000-19,000 for general workers working on national infrastructure. Don’t make me laugh at how embarrassingly low this is. Don’t know what this economist think they should be paid but clearly he’s more on the side of minimum wage.

Just goes to show you how out of touch he is. Just because everyone in SA is being short changed in their employment situation doesn’t justify paying people working at national infrastructure sites a pittance. I understand why the strike happened legal or not.

R20,000-25,000 would be more realistic for a general worker position to ensure the employees are more happy to be at work and to do a good job.

Think of it this way. How well would you do your job if you get a kick in the teeth every day you go to work and every payday?

You do know they get paid lunch/food at Eskom. So 19k and you don't have to buy food...

Eskom refuses to cut R1.5-billion food bill

Acting Eskom CEO Brian Molefe says he is unwilling to cut the power utility’s staff catering bill.

mybroadband.co.za

 

[borro]

You do know they get paid lunch at Eskom. So 19k and you don't have to buy food...

Eskom refuses to cut R1.5-billion food bill

Acting Eskom CEO Brian Molefe says he is unwilling to cut the power utility’s staff catering bill.

mybroadband.co.za

Nom nom time. Malnutrition can effect performances.