Why Eskom Union Urges South Africa to Abandon $8.5 Billion Move Away from Coal?

In a recent development, the National Union of Mineworkers (NUM), the largest labor union at Eskom, has called for the suspension of an $8.5 billion climate finance pact and the plans to transition away from coal. The union is concerned about the potential loss of jobs and the lack of consultation with organized labor regarding the unbundling of Eskom and the decommissioning of coal-fired power plants.

Here are the key points from the article:

• The National Union of Mineworkers (NUM) is calling for the suspension of an $8.5 billion climate finance pact and the plans to transition away from coal.
• The union is concerned about the potential loss of jobs and the lack of consultation with organized labor regarding the unbundling of Eskom and the decommissioning of coal-fired power plants.
• The Just Energy Transition Partnership (JETP) agreement aims to transition South Africa away from coal and towards renewable energy sources with financial support from various countries.
• Eskom, South Africa’s state-owned power utility, has already closed down its Komati coal-fired power plant as part of the broader transition plan.
• The NUM wants further consultations on the transition plan and the plans to split Eskom into generation, transmission, and distribution units.
• The union estimates that as many as 51,000 jobs could be at risk due to the transition away from coal.
• South Africa has delayed the completion of the Just Energy Transition Investment Plan (JET-IP), which is necessary for funding to flow from the partner countries.
• The JETP has faced criticism from South African Electricity Minister Kgosientsho Ramokgopa and Energy Minister Gwede Mantashe, who believe the country is being used as a “guinea pig” for the transition to renewable power.
• A report released by South Africa’s Presidential Climate Commission highlighted poor communication and lack of consultation with workers and communities affected by the closure of the Komati power station.
• The NUM argues that the energy transition should be fair and just to workers and their communities, and that the process should be put on hold until there is sufficient assurance of a fair transition.

The National Union of Mineworkers Calls for Suspension of Climate Finance Pact

The National Union of Mineworkers (NUM), the largest labor union at Eskom, has called for the suspension of an $8.5 billion climate finance pact and the plans to transition away from coal. The union is concerned about the potential loss of jobs and the lack of consultation with organized labor regarding the unbundling of Eskom and the decommissioning of coal-fired power plants.

Under the Just Energy Transition Partnership (JETP), South Africa agreed to move away from generating electricity from coal and towards producing more renewable energy. The JETP is supported by funding from Germany, France, the UK, the US, and the European Union. As part of the transition plan, Eskom has already closed down its Komati coal-fired power plant, with more closures planned in the future.

However, the NUM argues that there has been a lack of consultation with organized labor regarding the transition plan and the unbundling of Eskom into separate units. The union believes that as many as 51,000 jobs could be at risk due to the transition away from coal and wants further consultations to address these concerns.

The NUM’s demands add to the criticism of the JETP by South African Electricity Minister Kgosientsho Ramokgopa and Energy Minister Gwede Mantashe, who believe that the country is being used as a “guinea pig” for the transition to renewable power. They argue that the partner countries in the JETP are significantly further advanced in their own energy transitions than South Africa.

A report released by South Africa’s Presidential Climate Commission highlighted the poor communication and lack of consultation with workers and communities affected by the closure of the Komati power station. The NUM argues that the energy transition should be fair and just to workers and their communities, and that the process should be put on hold until there is sufficient assurance of a fair transition.