Eskom cuts bonuses: report

A couple of Eskom field service engineers said they are not getting bonuses. They are not management

Let me explain. In Eskom there are 2 groups: "bargaining unit" who are the lower level employees backed by unions and "managerial" who are the higher level employees not backed by unions. The term managerial refers to those higher level employees even though they may not be actual managers (eg engineers, CAs, etc). They are on R500k+ with benefits like car allowance, cellphone allowance etc. They will not get bonuses. Only the bargaining unit employees will receive.

Managerial employees are paid very well. Bargaining unit employees are not paid well, but do most of the work, which is why not paying them bonuses is going to be a problem.

This has not yet been communicated to the entire organisation, but is a well known fact. I have a friend who is very high up in the ranks.

Also, people need to familiarise themselves with what a 13th cheque really is. In Eskom, it's not some bonus freebie. Money is deducted from the employees monthly salary and the money that comes off their monthly salary is used for their 13th cheque. Managerial employees have the option of structuring their packages in such a way that they get the money monthly (if they want), but that would mean they would forfeit a 13th cheque.
 
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Let me explain. In Eskom there are 2 groups: "bargaining unit" who are the lower level employees backed by unions and "managerial" who are the higher level employees not backed by unions. The term managerial refers to those higher level employees even though they may not be actual managers (eg engineers, CAs, etc). They are on R500k+ with benefits like car allowance, cellphone allowance etc. They will not get bonuses. Only the bargaining unit employees will receive.

Managerial employees are paid very well. Bargaining unit employees are not paid well, but do most of the work, which is why not paying them bonuses is going to be a problem.

This has not yet been communicated to the entire organisation, but is a well known fact. I have a friend who is very high up in the ranks.

Also, people need to familiarise themselves with what a 13th cheque really is. In Eskom, it's not some bonus freebie. Money is deducted from the employees monthly salary and the money that comes off their monthly salary is used for their 13th cheque. Managerial employees have the option of structuring their packages in such a way that they get the money monthly (if they want), but that would mean they would forfeit a 13th cheque.

Engineers are still part of bargaining unit.
They get cellphones and car allowances.

But they still qualify for overtime and their increases are determined by the unions
 
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Engineers are still part of bargaining unit.
They get cellphones and car allowances.

But they still qualify for overtime and their increases are determined by the unions

What sort of engineers are those? I worked there for close to 3 years and never came across a bargaining unit engineer. If they are in bargaining unit, they will receive. They probably just haven't heard yet.
 
Nonsense. If a company does well, all deserve bonus/incentives, top to bottom. This fosters a culture of loyalty, good work ethic and generally a well performing company. I got no issues with anyone deserving bonuses.

I don't see that in todays world and definitely not in SA. All it fosters is demands and reasons to strike. Take Medupi for example. 4.5years overdue and a couple of months back strikes demanding performance bonuses. We see execs failing miserably after a few months work and walking away with 10's of millions in handshakes/bonuses/incentives. All that 'bonus' cash should be spent on the business itself, expanding, maintenance etc.
 
What sort of engineers are those? I worked there for close to 3 years and never came across a bargaining unit engineer. If they are in bargaining unit, they will receive. They probably just haven't heard yet.

They are Bsc engineers. They are quite new though. Been at Eskom for 3 years. But I could be wrong. I'll ask them again if they part of bargaining unit. They got an email saying they getting bonus
 
I hear via Eskom staff the last CEO that got the boot was handed a R25m golden handshake - for failing in his job!
 
I don't see that in todays world and definitely not in SA. All it fosters is demands and reasons to strike. Take Medupi for example. 4.5years overdue and a couple of months back strikes demanding performance bonuses. We see execs failing miserably after a few months work and walking away with 10's of millions in handshakes/bonuses/incentives. All that 'bonus' cash should be spent on the business itself, expanding, maintenance etc.

I was speaking about the ideal, not what Eskom have put into practice.
 
Strike coming up....

Actually, bonuses WILL be paid to everyone except management. The right thing to do in my opinion.

Bonuses will be paid.
They did a march on Friday.

Got mail showing certain KPIs were not achieved thus band E and F don't qualify for bonuses (Top management)


(they had to have a savings of R9.8bn, but only had R8.7bn)
 
Also, people need to familiarise themselves with what a 13th cheque really is. In Eskom, it's not some bonus freebie. Money is deducted from the employees monthly salary and the money that comes off their monthly salary is used for their 13th cheque. Managerial employees have the option of structuring their packages in such a way that they get the money monthly (if they want), but that would mean they would forfeit a 13th cheque.

Yea, where i work it is identical and i bet alot of the big corporates do it like that. The 13th cheque is almost a "make your own bonus" , pretty much voluntarily taking a % cut to your monthly salary and getting it out as a lump sum end of the year. I think this primarily started from the old-school days where people actually saved money to go on holiday in Dec (something no one is doing anymore it seems), the 13th cheque served that purpose.
 
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Field Service Engineers do fall part of the bargaining unit. Senior and Chief engineers do not.
 
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