INTRODUCTION

A very successful meeting between COSATU Mpumalanga and Eskom Kusile was held at the Protea Hotel in the Emalahleni Municipality. The purpose of the meeting was to consult on the developments that led to the shutdown of operations at the Kusile Power station as a result of a protest by workers that took place on 6 May 2011. The meeting was initiated by the COSATU Provincial leadership.

ATTENDANCE

COSATU DELEGATION

Ø Fidel Mlombo - COSATU Provincial Secretary
Ø Mpho Lesenyeho - COSATU
Ø Lucky Dlangamandla - NUM
Ø Patrick Kgaphola - NUM
Ø Cecilia Mpofu - NUMSA
Ø John Skhosana - NUMSA
Ø Mamaila Modiba - COSATU

ESKOM DELEGATION

Ø Loyiso Jiya - Chief Advisor for Communication
Ø Frans Hlakudi - Senior Contact Manager
Ø Charles Nthite - Roshcon Senior Manager

BACKGROUND OF KUSILE

Kusile Power Station is Eskom’s twelfth power station in Mpumalanga after Camden, Arnot, Komati, Groovlei, Majuba, Tutuka, Kendal, Kriel, Duvha, Matla and Hendrina. It is a high technology power station being built in the Nkangala District Municipality. Kusile is presently South Africa’s largest construction multi-billion rand project and will be the 4th largest coal plant in the world. It is expected that direct construction employment by the project will be 10 000 jobs and indirect employment 5000 jobs. The potential maximum number of jobs to be created by the project at peak is ± 13 000 direct jobs.

WHY THE NEED FOR AN URGENT MEETING – COSATU’s FIDEL MLOMBO

The Provincial Secretary of COSATU stated that COSATU in Mpumalanga appreciates and recognizes the Eskom project to build a power station in Mpumalanga and is aware of the positive economic impact the project will have within the province.

At the initial stages of the project the COSATU Provincial leadership held a series of meetings with the Eskom management whose purpose was to share information on the establishment of the project and its consequent economic impact.

COSATU in the Province is aware that presently the project has improved the socioeconomic status of thousands of our people in the province.

The incident that happened on 6 May 2011 that led to the destruction and burning of property is regrettable and unfortunate.

There is growing concern within our society regarding the latest developments at Kusile Power Station.

Not only the people of Mpumalanga are affected by the latest developments at Kusile but the country as a whole has a reason to worry.

That COSATU has initiated the meeting to deal with the following issues:-

Ø Receive a briefing from Eskom on the developments that led to the temporary shutdown of the project.
Ø The role of stakeholders in the province in trying to resolve the present challenge at Kusile.
Ø Agree on measures to resolve the problem with speed.

RESPONSE BY KUSILE MANAGEMENT – LOYISO JIYA AND FRANCE HLAKUDI

More than 6 000 employees are presently employed by different contractors.

The two biggest contractors in the project are Roshcon which employs ± 2000 people and KCW which employs ± 4000 people.

The issues that led to the strike started developing since from 18 April 2011. Workers have raised a number of dissatisfactions with their different contractors.

On 6th May 2011 about 4000 employees went on a rampage and destroyed the KCW offices, damaging property and proceeded to the Roshcon Offices, burning cars and a crane worth millions of rands.

On investigation, Eskom management established that the issues that gave rise to the revolt were matters of mutual interest. Eskom is not directly involved in dealing with the matters that gave rise to the problem.

Eskom have demanded that all contractors concerned should attend to the matters with speed and submit reports on how they have dealt with the issues. Such reports should also indicate how contractors will prevent such actions taking place again.

As soon as the contractors have submitted their reports, Eskom will consider resuming operations again.

A contractors’ forum meeting will take place either on Monday 16 May 2011 or Tuesday 17 May to integrate the issues and develop a response.

Criminal elements have taken advantage of the situation and stolen property and went on vandalized property. The police were called and a few people were arrested.

The contractors on site are presently employing ± 7000 employees.

Only 11-13 % of the project has been implemented. About 85 % of the project is still to be implemented.

The present developments impacts negatively to the progress and speedy completion of the project.

Other contractors are expected to join the operations around October or November 2011. It is expected that they will employ a large number of people in the province.

ROSHCON – CHARLES NTITE

Mr Charles Ntite of Roshcon briefed the meeting as follows:-

Workers employed by Roschon delivered a memorandum of demands to Roshcon management on 18 April 2011. Amongst the issues raised in it are the following:
Ø Employment of local people to be prioritized.
Ø Skills development – training of workers on different skills.
Ø Guaranteed jobs security.
Ø Prioritisation of at least 45% of woman for skills development.
Ø Formation of a committee to deal with recruitment.

Roshcon management is in a process of investigating all issues raised in the memorandum.

Ø On 6 May 2011 workers went on rampage and stormed the offices burning cars and a crane.
Ø Since the incident happened on 6 May 2011 Roshcon have not held any meeting with any union organized within the company or contractor.
Ø BICCAWU is amongst the unions organized within Roschcon but it does not enjoy sufficient representation as per the dictates of the LRA.
Ø Roshcon will do everything possible to find speedy solutions to the problem.

WAY FORWARD

After intense deliberations the parties agreed on the following:

Ø All parties to work for a speedy resolution of the problem.

Ø The possible date to resume operation is the week of 23 May 2011, as management had planned that workers would be released on Tuesday the 17 May 2011 to go and vote and come back on the 23 May 2011.

Ø That whatever the contractors decide to do in resolving this matter should not compromise the province, the project, and the workers.

Ø That COSATU will always be available to assist in normalizing the relations because COSATU has an interest in the future of the projects.

Ø That all parties should strive to realize the success of the project as it is of benefit to the Province and the country as a whole.