Eskom seeks labour deal to complete mega plants

NUM says utility is 'hiding truth from the public'over problems

NICKY SMITH "Eskom is facilitating a*rene- gotiation of the PLA at Kusile into a partnership arrangement bet­ween contractors and labour — ESKOM will seek to broker a new along the lines of the process deal between its contractors and which has already began at labour at its Kusile site this week, Medupi... talks at Kusile will start after two unions said yesterday next week," Ms Joffe said. that no work had been done on the The first power is supposed to mega power station since come from Medupi's unit six by Thurs­day as workers protest December, but the project is against working conditions. already 18 months late. The delay Although the National Union of has played havoc with Eskom's Mineworkers (NUM) and the ability to schedule the continuous National Union of Metalworkers maintenance its aged and of SA (Numsa) said Kusile had unpre­dictable plants require to been idle since Thursday, Eskom keep power flowing, raising the spokeswoman Hilary Joffe spectre of rolling blackouts in dis­puted this, saying that 2.000 winter. staff were on site on Saturday. Public Enterprises Minister Malusi Numsa national co-ordinator for Gigaba warned on a site visit to the energy and steel sector, Medupi last week that fail­ure to Stephen Nhlapo, said labour meet the December dead­line "is prob­lems at Kusile, which flared not an option". Further delays up on Thursday, led to the closure would be met with strong action, of the site on Saturday. including "tough penalties for However, Ms Joffe said by SMS anyone who is responsible". yesterday that there had been no He insisted that contractors and lockout and that talks would begin Eskom improve their ability to today to establish a new labour manage industrial relations. agreement for Kusile. Eskom CEO Brian Dames said last NUM spokesman Lesiba Seshoka week that work had already started said Eskom was "hiding the truth at Medupi on creating a forum to from the public" and that no work devise a new labour agreement would take place at Kusile "until that accommodated labour's workers are heard and treated with concerns and addressed the dignity". contractors' need for increased The problems at Kusile come after productivity on site. Eskom was finally able to broker a Mr Nhlapo said workers ceasefire with labour last month to appre­ciated the need for Eskom's end 10 weeks of indus­trial action capital programme deadlines to be at Medupi. met but could not be held to the Eskom is anxious to avoid a repeat PLA as it stripped them of their of Medupi's labour prob­lems at right to strike and bargain for Kusile, and to prevent unrest wages. The PLA has been spreading to Ingula, its pumped abandoned at Medupi after storage programme in KwaZulu- workers rejected it for the same Natal. reasons. Ms Joffe said work disruptions at Workers had grown frustrated Kusile had continued on Friday, with conditions at the Kusile site with about two-thirds of workers such as accommodation — one showing up after a work stoppage contractor has workers living next the day before. to a raw-sewage treatment plant— The "labour unrest" at Kusile was the poor quality of food and delays related to inconsistencies in the in the payment of bonuses, Mr application of the Project Labour Nhlapo said. Complaints were not Agreement (PLA) and other dealt with, forcing workers to industry agreements, she said in an strike to get contractors to take e-mailed response to questions on their concerns seriously, he said. Friday. [email protected]

Eskom seeks labour deal to complete mega plants Date: 15 April 2013 Publication: BUSINESS DAY Page Number: 1 Author: NICKY SMITH Language: English Categories: Eskom Holdings Ltd

Eskom in talks to sort out Medupi Intention to resolve unrest

Dineo Faku and unions to establish a Mineworkers is not. "We will support anything labour framework agreement The talks are meant to focus that will contribute to the IF PUBLIC Enterprises at the power station. on the awarding of incentives project. We feel the current Minis­ter Malusi Gigaba had The talks come against the and bonuses to employees project labour agreement is any doubts about the extent backdrop of two missed and the inclusion of the efficient, but we will support of ten­sion at the Medupi dead­lines for the surround­ing community. anything that is new." power sta­tion site, they were commissioning of the R90 Of Medupi's 17 000 Reyneke said that while the removed by workers shouting billion Medupi project, which employ­ees, 5 000 are full- negotiations were under way, demands for more money is expected to contribute 4 time Eskom employees and there was no guarantee there during his visit there last 800 megawatts of power to the remainder are employed would be no further strikes. Thursday the national grid by 2016. by contractors. Eskom spokeswoman Hilary Workers who are stationed at The deadline was shifted to According to Numsa, pay has Joffe said on Friday that the unit 6 of the plant told the end of this year prior to a to be addressed urgently as strike at Kusile was linked to Gigaba, "Re batla tjhelete 10-week-long strike. the hourly rate for general inconsistencies in applying hore e oketswe [We want Talks are under way to workers at Medupi and the project labour agreement more money]," when he re­place the Medupi project Kusile is between R16 and and industry agreements. greeted them. Gigaba replied labour agreement, which has R17. "Eskom is facilitating a that he was fixing the pay been criticised for pay "We agreed to cease fire on renegotiation of the project issue, in ref­erence to talks discrepan­cies, with a new Monday. Contractors have labour agreement at Kusile between unions, Eskom and partnership pact that will committed to stop all into a partnership contractors, which started last include the Lephalale discipline against our arrangement be­tween Monday. community members and unions have contractors and labour -along The National Union of Numsa is consulting its undertaken to stop strikes. In the lines of the process which Metalworkers of SA (Numsa) members for approval of the return, Eskom will become has already begun at Medupi. committed to a ceasefire on proposal. Trade union part of the project and a The majority of the workers in­dustrial action to make Solidar­ity is also part of the partnership agreement will be at Kusile were at work today way for talks with Eskom, talks, but the National Union formulated," Numsa sector and construction is contractors of co-ordinator for base metals con­tinuing," Joffe said. and energy Stephen Nhlapo Labour law expert Michael said on Friday Bagraim commended Eskom Solidarity head of the metal, for its intervention. engineering and electrical industry Deon Reyneke said:

Eskom in talks to sort out Medupi Date: 15 April 2013 Publication: THE STAR, BUSINESS REPORT Page Number: 15 Author: Dineo Faku Language: English Categories: Eskom Holdings Ltd

Gigaba vows to whip Medupi into shape TINA WEAVIND schedule. The new power until May 31, after which funding station's Unit 6 is expected to will have to be diverted from HEADS will roll if Medupi's add 800MW to the power grid. somewhere else in Eskom's Unit 6 does not begin operating At present Eskom is buying back budget. by the end of the year, the about 1 000MW by paying an Of South Africa's 43 000MW of Minister of Public Enterprises undisclosed amount each month installed power, about 34 000MW promised this week. to big industry to make it worth is used. The remaining 9 000MW Malusi Gigaba threatened its while to halt production. is taken up by power outages and contractors and offered While the National Energy maintenance. Only critical workers incentives to make it Regulator of SA refused to allocate maintenance and repairs are being happen. funding specifically for the buy- carried out, so unplanned outages "The risks of further delays are backs, which were termed are increasing. Spare capacity is at high for South Africa's inefficient, they will have to around 2%. reputation [for] our ability to continue if SA is to avoid a replay Supply is exceptionally tight and, deliver on mega projects on of the 2008 blackouts. as Eskom CEO Brian Dames said time," he was quoted as saying. The current contracts are in place last month, any new power source Medupi is 18 months behind will do. Assuming the whip-cracking and incentives get Unit 6 online at the end of the year, it will be summer — the least power-intensive season. Before that SA must get through winter, the most power-intensive season, for which Eskom finance director Paul O'Flaherty has said another 1 000MW is needed. "Eskom has done exceptionally well," Dames said. "Every day the lights stay on." How long this can continue is up to the people, Eskom says. The country needs to cut back its usage by 10%.

Gigaba vows to whip Medupi into shape Date: 14 April 2013 Publication: Business Times Page Number: 3 Author: TINA WEAVIND Language: English Categories: Eskom Holdings Ltd

at this stage. He added that a study was under way to deter­mine the cost associated with the delays. "Meeting the deadline would be a huge challenge due to quality issues at the Hitachi boiler contract and Alstom control and instrumentation contract, as well as labour unrest," he said. Medupi, which employed 17 000 people, was expected to contribute 4 800 megawatts or more than 12 percent to the national grid when it was completed in 2016. The December target in­cludes power from the unit 6 plant, which was 80 percent complete, while unit 5 was between 50 percent to 60 per­cent complete. According to Roman Crookes, the project manager at the plant, Hitachi has brought in specialists from Germany and Poland to repair the boiler. Gigaba was earlier reported to have said that penalties would be levied for cost over­runs related to delays. Medupi is the first new coal- fired power station Eskom has built in 20 years.

Carrot for workers at Medupi ...P2/2 Publication: THE STAR, BUSINESS Date: 12 April 2013 REPORT Page Number: 15 Author: Dineo Faku Language: English Categories: SA Parastatals - General (Inc. Privatisation)

ELEKTRISITEIT Medupi: Koppe op skavot Eerste krag moet voor einde van die jaar gelewer word

Antoinette Slabbert Die uitdaging is volgens hom By Kusile word die om die kabel- en elektriese arbeidsoor­eenkoms ook Lephalale. - Medupi moet voor werk te skeduleer saam met die hersien en hier sal Eskom ook einde vanjaar sy eerste her­stel van die sweislaste. strenger toesig hou. elektrisi­teit lewer, kom wat Volgens Crookes weet Hitachi â–ºGigaba se die regering werk' wil. As dit nie gebeur nie, sal presies waar die defekte is en baie hard daaraan om voor die koppe rol, het Malusi Eskom sal toesien dat die ein­de vanjaar 'n aankondiging Gigaba, minister van openbare betrokke spanne elke oggend oor sy kernkragplanne te doen. ondernemings, gister op 'n vergader om te ver­seker dat media-besoek aan die be-leerde almal presies weet wat om te bouprojek gese. doen. Die ander groot Kontrakteur en vakbonde het pro­bleem is die Gigaba vroeer gister belowe programmatuur wat Alstom hul­le sal saamwerk om die verskaf en wat al drie toetse spertyd te haal. gefaal het. Volgens Dames is Terwyl Gigaba en Eskom die dit die stelsel wat moet sorg skroewe by Medupi baie Brian Dames, uitvoerende hoof van Eskom, gister by die bouperseel "dat alles werk". stywer draai, het arbeidsonrus van die Medupi-kragstasie buite Lephalale. Foto: DEAAN VIVIER Eskom het 'n span na Parys egter uit-gekring na Kusile, Die nasionale energienetwerk betyds herstel word sodat die ge­stuur om 'n oog oor Alstom Eskom se an­der nuwe funksioneer al maande met druktoets wat in Junie verlede te hou. Eskom gaan duidelik kragstasie, wat in Mpumalanga baie min reserwekrag en ervaar jaar op die ketel gedoen is, in voren­toe die leisels by in aanbou is. Brian Dames, toe­nemende druk met die Ju­lie herhaal kan word, het Medupi op alle gebiede baie uitvoerende hoof van Es­kom, winter voor die deur. Paul O'Flaherty, Eskom se styf vashou. het bevestig daar is proble­me Roman Crookes, uittreden-de finansiele hoof, Dames sal elke week 'n by Kusile en gese: "Ons moet projekbe­stuurder by Medupi, gese. verslag kry en Gigaba en die vinnig optree." het op 'n be-sigtigingstoer aan Hy het die afgelope drie jaar Eskom-di-reksie elke twee Sake24 het verneem dat Gigaba gese eenheid 6, wat ook aan die hoof van Eskom se weke. Gigaba se hy wil weet bou­werk die afgelope drie dae teen einde vanjaar krag moet bouprogram gestaan en sal van wat aangaan en sal nie wag tot onder­breek is, maar die lewer, is "in intensie-we sorg" nou af drie dae per week bv Desember om in te gryp as dit omvang van die ontwrigting en sal net soos 'n baie siek Me­dupi deurbring totdat die nodig raak nie. was nie heelte­mal duidelik pasient deurlopend die beste projek weer op koers is. Volgens O'Flaherty word die nie. aandag kry. Hitachi het 65 spesialiste uit gewraakte arbeidsooreenkoms Die plan is dat Kusile teen laat Die spertyd van Desember kan Europa na Medupi gestuur om by Medupi vervang deur 'n 2014 begin krag lewer, maar net gehaal word as die die herstelwerk te doen, het ven-nootskapsooreenkoms kraglewering by Medupi word foutiewe sweislaste in eenheid O'Flaherty gese. waaroor daar na verwagting as dringender vir ekonomiese 6 se ketel teen einde Mei groei in die land beskou, berig ooreenstemming sal wees. "Dit Reu­ters. wat ons het, werk nie," het hy gese.

Medupi: Koppe op skavot Date: 12 April 2013 Publication: SAKE-BEELD Page Number: 15 Author: Antoinette Slabbert Language: Afrikaans Categories: Eskom Holdings Ltd

Carrot for workers at Medupi Incentives offered for The number of not people employed striking at the Medupi plant Dineo Faku Kusile is supposed to start up IN A BID to avoid a logjam in late 2014 but Medupi is that has seen one of South more urgent and getting it on Africa's biggest power line by the December 2013 stations riddled with chaos, target is seen as crucial for Public Enterprises Minister economic growth. Malusi Gigaba an­nounced Besides the workers's that workers at Eskom's incen­tive scheme, Gigaba power stations -currently yesterday announced other under construction -would be measures aimed at speeding given incentives to take up the Medupi work ownership of the projects including in­creasing the until they are commissioned. work schedule to two shifts a Gigaba recently cracked the day over seven days a week, whip on further delays to the the establishment of a sub- R90 billion Medupi power committee that would be responsible for giving him plant, which has already had feed­back and a requirement two commissioning deadlines for Eskom's financial director extended and about 10 weeks and other senior executives to of work lost to industrial spend a day every week on action. site at Medupi. The plant was initially Gigaba said he expected the scheduled to come on stream executives of the contractors in December, but that to do the same. deadline was shifted to May "Heads will roll if the tar­gets and then later to December Public Enterprises Minister Malusi Gigaba, centre, and Eskom chief executive Brian Dames, left, visit the Medupi site to witness the progress of construction on the 2013. for delivering the project are power station. photo: Simphiwe mbokazi not met. We are not ready to How this incentive scheme tolerate any further delays. will placate workers remains The risks of further delays are to be seen, but this carrot is minister. Eskom management The minister's visit to the plant was disrupted by an Medupi power plant. seen as an effort to restrain high for South Africa's and executives of the plant yesterday to assess unprotected strike. Eskom spokeswoman Hilary reputation by investors and them from engaging in con­tracted companies. progress comes a few weeks "There is a strike at Kusile, it Joffe later clarified that about industrial action that will our ability to deliver on mega To improve labour relations, after concerns were raised started sometime this week 2 000 of the 15 000 workers projects on time," Gigaba further delay the project. the plant management and about whether the project and people are offsite today at Kusile had gone home and It was not revealed yester­day said. employees are reviewing the would meet its deadline, as (yesterday)," Eskom chief some construction had been Brian Dames, the chief if the National Union of labour agreement in a bid to Eskom grapples with exec­utive Brian Dames told suspended. Metalworkers of SA had exec­utive at Eskom, said the guide labour issues at the site tighten­ing power generation Reuters on the sidelines of a Officials did not say what utility was unable to en­dorsed the incentive after a 10-week long strike. supply visit by journalists to the site prompted the wildcat action. determine cost overruns as a scheme, but its officials were Work at the Kusile power of the last seen engaged in a result of delays meeting with the

Carrot for workers at Medupi ...P1/2 Publication: THE STAR, BUSINESS Date: 12 April 2013 REPORT Page Number: 15 Author: Dineo Faku Language: English Categories: SA Parastatals - General (Inc. Privatisation)

Unions had rejected the existing pro­ject labour agreement at Medupi, calling for Labour Agreement, which regulates an agreement that is respectful of working conditions between contractors workers' rights, such as the right to strike and their employees. "or to express unhappiness", Mr Dames As a result of the seven-week strike at said. Workers are demanding to be treated Medupi, which ended last month, the with greater "consistency". labour deal is being renegotiated. Hitachi Power Africa chairman Colin "Work­ers at Kusile are saying 'Don't Bailey said the company "had finalised a leave us out of the process'," said Mr solution to the welding issues identified Nhlapo. on its boiler contract" and work would be Mr Dames said it was "crucial" to engage completed on time for Medupi's first unit with labour to address issues. He to come on line in December. confirmed that construction at Kusile had Medupi programme project manager been halted, and said he expected Roman Crookes said the priority was workers to return today. integrating work flow on the site. Unit six Eskom executives and board mem­bers, at Medupi was at least 85% complete, along with Mr Gigaba and a dele­gation while work overall on the site was 62% from his department, met union leaders complete, he said. and contractors from Medupi in He said unit six "has been put into Lephalale yesterday. intensive care" and that work had begun Mr Gigaba said he had been encour­aged with the arrival of 65 specialist welders by the meeting, and stressed the from overseas to repair the welds which importance of managing industrial "have been quarantined, we know where relations at the site to the success of they are". With Carol Paton, Sapa meeting the deadline.

Bid to keep O'Flaherty in Eskom finance job...P2/2 Date: 12 April 2013 Publication: BUSINESS DAY Page Number: 1 Author: NICKY SMITH Language: English Categories: Eskom Holdings Ltd

Bid to keep O'Flaherty in Eskom finance job

NICKY SMITH Eskom chairman Zola Tsotsi confirmed yesterday that it was in talks with Mr O'Flaherty. ESKOM is in talks with highly- "The matter has been dis­cussed rated financial director Paul and is under discussion due to the O'Flaherty to consider extending need to have Paul stay on," Mr his contract as the utility Tsotsi said. "He has indicated he is scram­bles to bring its showcase willing to consider continuing Medupi power station on line to because of his commitment to help ease SA's looming power Eskom and to the country. shortage. "The matter has come now to the Mr O'Flaherty had been due to second round. We must see what leave the utility in July but he has terms can be agreed," Mr Tsotsi become central to the completion said. "The important thing is he of its Medupi coal-fired plant, has agreed to consider it." Public Enterprises Minister Malusi Gigaba and Eskom finance director Paul O'Flaherty exchange views during which has been dogged by Eskom director Mafika Mkwanazi esca­lating costs, delays caused by said the board was eager to have an inspection of the Medupi power station construction site, in Limpopo, yesterday. Picture: ARNOLD PRONTO strikes and poor workmanship. him stay on. He was recently dispatched to Mr Gigaba said it was vital for the Medupi is already 18 months lems on site and to prevent them Medupi to play a hands-on role in utility's ability to plan and execute behind schedule and from escalating, Eskom CEO guiding the project, after news of programmes to build institutional commission­ing its unit six at the Brian Dames said. He had asked thousands of faulty boiler welds capacity and to hold on to skills. end of the year is crucial to contractors Alstom and Hitachi to threatened yet another delay. Mr O'Flaherty declined to Eskom's plans to keep the lights raise their capacity to manage Eskom yesterday took a media comment. "I am not going to on. labour relations on site. contingent on a tour of Medupi, comment on that, it's an unfair Mr Gigaba said yesterday that it However, construction ground to a and Public Enterprises Minister question," be said. was important that Eskom improve halt at Kusile yesterday when Malusi Gigaba vowed that heads The news that he may stay on will industrial relations at its capital workers embarked on an illegal would roll unless the contracts be a relief to Eskom, which has projects to manage the delivery strike. National Union of were completed on time. three major capital projects under risk. Metal­workers of SA energy sector "I wish to make it unequivo­cally way: Medupi, Kusile —which is In order to meet the December convener Stephen Nhlapo said clear that I will not tolerate any Medupi's "twin" —and the Ingula deadline, Mr Gigaba said plans workers were unhappy over the delays to the delivery of this unit," pumped storage project in were in place to lift productivity same issues as at Medupi, among Mr Gigaba said. KwaZulu-Natal. by introducing a seven-day work them gripes about accommoda­ "Necessary penalties will be at week with double shifts. tion and food, and the Project hand should any delays be A "one-stop shop" to deal with experienced. Heads will roll." labour disputes had been set up at Medupi in order to resolve prob-

Bid to keep O'Flaherty in Eskom finance job...P1/2 Date: 12 April 2013 Publication: BUSINESS DAY Page Number: 1 Author: NICKY SMITH Language: English Categories: Eskom Holdings Ltd

ESKOM said yesterday it would do Aims high for Medupi its utmost to have its grid, but admitted power to the grid new Medupi power it would be a from its first unit by plant generate "huge challenge". the end of 2013," electricity by the end "Medupi is on a tight Eskom told of this year to ease schedule to deliver journalists visiting pres­sure on the the plant. - Reuters national

Aims high for Medupi Date: 12 April 2013 Publication: SOWETAN Page Number: 13 Author: Reuters Language: English Categories: Eskom Holdings Ltd