Everyone pays when Eskom pulls the plug
20 January 2008, 08:58
By Mary Corrigall
With every industry is dependent on electricity to remain operational, the frequent blackouts across the country are hitting workers hard.
Not only are they being forced to work overtime to keep up with their workload, but casual workers, who are paid an hourly rate, are experiencing substantially reduced earnings.
The future looks bleak, with predictions that reduced growth in job creation will result from industrial projects being put on hold until 2013.
Existing jobs are under threat. If the frequency of the blackouts experienced this past week continues, the end of next week will see the beginning of the laying off of low-level workers.
"If power cuts continue in the same way as this past week, there will be job losses and businesses will close," warned Peter Noke, executive director of the South African Petroleum Retailers' Association, referring to the fate of petrol-pump attendants and retailers.
The petrol industry is heavily regulated, leaving petrol retailers only a modest profit margin. Frequent power cuts are therefore having a devastating effect on their revenues.
In petrol retailing, workers must be paid for at least four hours of their shift regardless of whether they are able to work during that time, according to Noke.
"If the retailer is unable to make sales during that time, he must carry those losses."
But retailers cannot bear such losses for much longer.
"The service-station industry is on a knife's edge," said Noke.
With retailers bearing the brunt, widespread staff retrenchments are in the offing, he asserted.
There are an estimated 55 000 to 60 000 pump attendants in South Africa, each of whom supports up to six dependents, said Noke.
"Retrenchments could have a devastating effect on those at the bottom of the food chain."
In the clothing industry, in which a downturn in business is likely until March, many employers are taking advantage of electricity blackouts, sending their casual workers home and docking their pay pro rata, according to a clothing manufacturer based in Selby, Johannesburg, who asked not to be named.
The only provision set by the National Bargaining Council for the clothing manufacturing industry to protect workers asserts that workers cannot be dismissed for two hours following the beginning of a blackout. Eskom's power cuts, however, frequently last for well over two hours.
Though clothing workers are paid a weekly wage, it is standard practice for workers to be paid only for the hours they spend at the work place (whether or not they are working), according to Wayne van der Rheede, national organising secretary of the South African Clothing and Textile Union (Sactu).
But it is not only workers in the clothing industry whose pay packets are shrinking.
Nathan Veitch works in the IT industry as a support technician for Dial-A-Nerd, in Sunninghill, Johannesburg. Like all the support technicians who work for this nationwide computer-support company, Veitch works on commission: he is paid for each client he services. His wages have shrunk by about 30 percent since load shedding began.
"If there is no power at my client's address, I cannot go and fix his computer."
Veitch said that frequent power cuts in Sunninghill have halved the number of clients he sees in a week.
Cosatu spokesperson Patrick Craven suggested that the casualisation of labour was at the heart of the problem.
Craven said workers should not carry the burden of load shedding. He said Cosatu would consider taking action after the meeting of its central executive next month.
With many manufacturing businesses experiencing a loss of revenue because of frequent power cuts, it is only to be expected that employers will look for ways of reducing their overheads, said a technical executive for a big furniture manufacturer in Industria, Johannesburg, who asked not to be named.
In November, his company experienced blackouts for two consecutive days, in which time it lost R1 million in revenue. Coupled with the fact that power cuts have played havoc with the computer-operated machinery at its factory, incurring further expense, this furniture producer is eager to reduce its staff wages bill by ordering employees not to come to work on days when load shedding is expected. The 600 workers who toil at this factory are all paid hourly and, obviously, will earn less when such situations arise.
Owners of restaurants and catering businesses are also feeling the pinch, according to Jaco Malan, senior commissioner of the Restaurant, Catering and Allied Trades Bargaining Council.
Malan has received a large number of enquiries from restaurateurs considering retrenchments because of reduced turnovers caused by recurrent and lengthy power cuts.
"They can't afford to close the doors of their businesses during peak times when there is load shedding," said Malan.
Waiters and waitresses toiling at restaurants that are habitually hit by blackouts are struggling to survive on low wages per shift - they rely on tips to subsidise their pay.
Mina Madikela, a 30-year-old waitress who works at the Mugg & Bean in Sandton City, said she is battling to survive on the reduced tips she has been receiving because of daily power cuts.
"The electricity is out every day between 10am and noon. The restaurant used to be full during that time, with people having breakfast or coffee. We can't work in the dark. I am suffering."
Madikela is the only breadwinner in her family.
Frequent electricity blackouts during working hours are also forcing many people to work extra hours to catch up with their workload. Many workers are not financially compensated for their overtime.
Richard Seepamere, 29, a technical manager in Johannesburg, has had to work until 7pm on days when power cuts have hit.
"I have to leave work very late to finish all the urgent work for our clients or they will be unhappy the next day."
Seepamere isn't paid overtime.
Acutely aware of the financial losses load shedding has had, and will have, on his company, Seepamere is anxious about his job security.
"I am worried about the company. I can tell that they are not making money with load shedding. This will have an effect on all staff members."
With every industry is dependent on electricity to remain operational, the frequent blackouts across the country are hitting workers hard.
Not only are they being forced to work overtime to keep up with their workload, but casual workers, who are paid an hourly rate, are experiencing substantially reduced earnings.
The future looks bleak, with predictions that reduced growth in job creation will result from industrial projects being put on hold until 2013.
Existing jobs are under threat. If the frequency of the blackouts experienced this past week continues, the end of next week will see the beginning of the laying off of low-level workers.
"If power cuts continue in the same way as this past week, there will be job losses and businesses will close," warned Peter Noke, executive director of the South African Petroleum Retailers' Association, referring to the fate of petrol-pump attendants and retailers.
The petrol industry is heavily regulated, leaving petrol retailers only a modest profit margin. Frequent power cuts are therefore having a devastating effect on their revenues.
In petrol retailing, workers must be paid for at least four hours of their shift regardless of whether they are able to work during that time, according to Noke.
"If the retailer is unable to make sales during that time, he must carry those losses."
But retailers cannot bear such losses for much longer.
"The service-station industry is on a knife's edge," said Noke.
With retailers bearing the brunt, widespread staff retrenchments are in the offing, he asserted.
There are an estimated 55 000 to 60 000 pump attendants in South Africa, each of whom supports up to six dependents, said Noke.
"Retrenchments could have a devastating effect on those at the bottom of the food chain."
In the clothing industry, in which a downturn in business is likely until March, many employers are taking advantage of electricity blackouts, sending their casual workers home and docking their pay pro rata, according to a clothing manufacturer based in Selby, Johannesburg, who asked not to be named.
The only provision set by the National Bargaining Council for the clothing manufacturing industry to protect workers asserts that workers cannot be dismissed for two hours following the beginning of a blackout. Eskom's power cuts, however, frequently last for well over two hours.
Though clothing workers are paid a weekly wage, it is standard practice for workers to be paid only for the hours they spend at the work place (whether or not they are working), according to Wayne van der Rheede, national organising secretary of the South African Clothing and Textile Union (Sactu).
But it is not only workers in the clothing industry whose pay packets are shrinking.
Nathan Veitch works in the IT industry as a support technician for Dial-A-Nerd, in Sunninghill, Johannesburg. Like all the support technicians who work for this nationwide computer-support company, Veitch works on commission: he is paid for each client he services. His wages have shrunk by about 30 percent since load shedding began.
"If there is no power at my client's address, I cannot go and fix his computer."
Veitch said that frequent power cuts in Sunninghill have halved the number of clients he sees in a week.
Cosatu spokesperson Patrick Craven suggested that the casualisation of labour was at the heart of the problem.
Craven said workers should not carry the burden of load shedding. He said Cosatu would consider taking action after the meeting of its central executive next month.
With many manufacturing businesses experiencing a loss of revenue because of frequent power cuts, it is only to be expected that employers will look for ways of reducing their overheads, said a technical executive for a big furniture manufacturer in Industria, Johannesburg, who asked not to be named.
In November, his company experienced blackouts for two consecutive days, in which time it lost R1 million in revenue. Coupled with the fact that power cuts have played havoc with the computer-operated machinery at its factory, incurring further expense, this furniture producer is eager to reduce its staff wages bill by ordering employees not to come to work on days when load shedding is expected. The 600 workers who toil at this factory are all paid hourly and, obviously, will earn less when such situations arise.
Owners of restaurants and catering businesses are also feeling the pinch, according to Jaco Malan, senior commissioner of the Restaurant, Catering and Allied Trades Bargaining Council.
Malan has received a large number of enquiries from restaurateurs considering retrenchments because of reduced turnovers caused by recurrent and lengthy power cuts.
"They can't afford to close the doors of their businesses during peak times when there is load shedding," said Malan.
Waiters and waitresses toiling at restaurants that are habitually hit by blackouts are struggling to survive on low wages per shift - they rely on tips to subsidise their pay.
Mina Madikela, a 30-year-old waitress who works at the Mugg & Bean in Sandton City, said she is battling to survive on the reduced tips she has been receiving because of daily power cuts.
"The electricity is out every day between 10am and noon. The restaurant used to be full during that time, with people having breakfast or coffee. We can't work in the dark. I am suffering."
Madikela is the only breadwinner in her family.
Frequent electricity blackouts during working hours are also forcing many people to work extra hours to catch up with their workload. Many workers are not financially compensated for their overtime.
Richard Seepamere, 29, a technical manager in Johannesburg, has had to work until 7pm on days when power cuts have hit.
"I have to leave work very late to finish all the urgent work for our clients or they will be unhappy the next day."
Seepamere isn't paid overtime.
Acutely aware of the financial losses load shedding has had, and will have, on his company, Seepamere is anxious about his job security.
"I am worried about the company. I can tell that they are not making money with load shedding. This will have an effect on all staff members."
- This article was originally published on page 4 of The Sunday Independent on January 20, 2008
Johannesburg
