Cosatu has called for immediate relief from high electricity prices to prevent further job losses, during its bilateral meeting with the African National Congress (ANC) on Monday.
The trade union federation said the continuous increase in electricity tariffs has forced several companies, including smelters, to close down, resulting in massive job cuts. The latest alarm was raised by resources giant Glencore, which warned of the devastating effects of the high electricity costs on businesses.
According to Cosatu, if the situation continues unchecked, thousands more workers will lose their jobs, downstream industries will collapse, and some towns could turn into “ghost towns.” The federation urged the ANC-led government to act decisively to avert an economic crisis.
In January, the National Energy Regulator of South Africa (Nersa) approved Eskom’s tariff increases of 12.74% for 2025/26, 5.36% for 2026/27, and 6.19% for 2027/28. Nersa noted that while it must ensure Eskom’s financial stability, it also recognised the need to keep electricity affordable for consumers.
Cosatu’s parliamentary coordinator, Matthew Parks, said the union is pushing for both short-term and long-term solutions. “You need to find some way of immediately relieving the price of electricity for these companies and look long term at the leakages of finances at Eskom,” he said.
Parks pointed out that Eskom is struggling because about half of its consumers do not pay for the electricity they use, leading to a surge in municipal debt owed to Eskom—from R40 billion to R95 billion in five years. He added that while Eskom has received relief packages before, this cannot continue indefinitely.
“We have to deal with the financial leakages, which include a move towards prepaid electricity,” Parks added.
Cosatu plans to use the medium-term budget policy statement in November to push for more funding for industrialisation programmes and measures to address economic challenges.
Meanwhile, during the same meeting, Cosatu also discussed its alliance with the ANC and the South African Communist Party (SACP), following the SACP’s recent decision to contest elections independently.
Parks said Cosatu intends to engage both allies to maintain unity within the tripartite alliance. “We are clear that we want the alliance with the ANC and we want the alliance with the party on their different complementary roles. We have a deep fear of further fragmenting and weakening the progressive movement,” he said.
Cosatu’s call for urgent action comes as the Democratic Alliance (DA) announced its new Economic Inclusion for All Bill, which seeks to replace race-based empowerment laws with policies that target poverty. The bill was immediately rejected by both the ANC and Cosatu.
Parks reiterated that Cosatu will continue to engage all partners to safeguard workers’ interests and preserve unity within South Africa’s progressive political bloc.
