State power utility Eskom referred a pay dispute with its unions to "compulsory arbitration" on the weekend, after unions rejected a revised pay offer. However, the unions, which represent some 30 000 workers, have called on government to intervene, having indicated that they are not interested in going to arbitration.

The negotiations broke down last week, with Eskom describing union demands for increases of 9% and a housing benefit of R2 500 a month as "unaffordable", adding that the increases would cost Eskom nearly R1-billion a year.

Eskom last week tabled a one-year revised offer, which included an 8% increase in basic pay, a 5,6% increase in allowances and a choice of one of two housing benefit options. These options are R500 a month housing benefit for all employees in the categories represented by the unions, or R800 a month as a top-up to the existing housing subsidy scheme.

The Eskom offer also stipulated that Eskom and the unions enter into discussions on a defined contribution pension scheme as an additional option to the current defined benefit scheme. However, the unions had indicated that they were opposed to the defined contribution pension option.

As essential service workers, Eskom and Public Enterprises Minister Barbara Hogan indicated that arbitration had to be the next step as workers could not legally strike.

However, the unions said on Friday that only a very few of their members could be classified as supplying essential services and that industrial action should, thus, not be discounted.

The National Union of Metalworkers of South Africa, the National Union of Mineworkers and Solidarity also indicated that they could have a strike ballot on Tuesday.