South Africa: Eskom Approves Retrenchment Process for Executives

Eskom Generation's pilot wind-farm facility at Klipheuwel in the Western Cape, South Africa.

Eskom's Board of Directors has decided to review the company's organisational design to enhance operational and cost efficiencies.

"Despite efforts to curb expenditure, Eskom's operating costs have continued to increase dramatically, while output has remained largely unchanged," Eskom said in a statement.

As such, Eskom's Board has approved a Section 189 process for its executive structure.

Section 189 of the Labour Relations Act sets out the legal requirements for retrenchments for companies.

"Only members of the executive structure will be impacted. Eskom will share the updates with the relevant stakeholders as appropriate," the power utility said.

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