Eskom Workers Union Demands Suspension of R164bn Climate Finance Pact

The National Union of Mineworkers, the dominant labour union of South Africa's state power utility, Eskom Holdings SOC Ltd., is arguing for the suspension of a staggering R164.01-billion climate finance pact. This pact, known as the Just Energy Transition Partnership (JETP), involves some of the world's wealthiest nations including Germany, France, the UK, the US, and the European Union. It aims at facilitating South Africa's transition from coal, the most polluting fossil fuel, to cleaner, renewable energy sources.

However, unbeknown to many, this move threatens as many as 51,000 jobs, marking the primary concern for the union. In a statement released on Monday, the National Union of Mineworkers expressed its desire for prolonged consultations on the transition plan and the proposed division of Eskom into distinct generation, transmission, and distribution units. The South African Government purports that this split will enhance performance amidst escalating power outages across the country.

There have been delays in finalising the Just Energy Transition Investment Plan (JETIP), a crucial step for the flow of funding from rich nations. Added to this is the critical eye of Eskom’s labour union, South African electricity minister Kgosientsho Ramokgopa, and energy minister Gwede Mantashe, who have openly voiced their concern. They argue that South Africa is becoming a mere "guinea pig" for a transition to renewable power.

The JETP, which was initiated at the COP26 climate summit in Glasgow in 2021, is being viewed as a prototype for similar agreements with countries like Indonesia, Vietnam, and Senegal. However, South Africa's Presidential Climate Commission, in a report published on Friday, highlighted the government's shortcomings in liaising with workers and communities, particularly concerning the decommissioning of the Komati power station.

Despite recognizing the necessity for a transition from high-emission to low-emission energy production, the National Union of Mineworkers emphasizes that it should uphold fairness and justice for workers and their communities.