NUMSA vows mass action and legal fight to protect Eskom assets

The National Union of Metalworkers of South Africa (NUMSA) has launched a fierce defence of Eskom board chairperson Mteto Nyati, warning that it will mobilise workers and pursue legal action against what it describes as an attempt to remove valuable assets from the power utility.

The union's comments follow criticism of Nyati by University of Cape Town energy expert Professor Anton Eberhard, who NUMSA claims has called for the Eskom chairperson to be removed.

NUMSA general secretary Irvin Jim accused Eberhard of advancing what the union described as a pro-privatisation agenda and criticised Presidential spokesperson Vincent Magwenya for defending government's position on Eskom's restructuring.

NUMSA said it was particularly concerned about the proposed transfer of Eskom's transmission assets to a separate transmission system operator (TSO).

The union argues that removing the assets from Eskom could weaken the utility's balance sheet and undermine its ability to secure funding and meet its long-term financial obligations.

According to NUMSA, Eskom could lose cumulative revenue of about R342 billion over three years, based on the NERSA Multi-Year Price Determination for 2025-2028.

The union further claims that the transfer could remove approximately R420 billion from Eskom's regulated asset base, while the transmission business generated almost R100 billion in revenue and a profit of about R27 billion during the last financial year.

NUMSA said these figures demonstrated why Eskom's board had a fiduciary responsibility to protect the utility's assets.

The union also disputes government claims that Eskom's concerns about the restructuring have been adequately addressed.

Magwenya previously said it was unfortunate that Nyati created the impression that a restructuring process was taking place without Eskom's involvement or to its detriment.

NUMSA rejected the statement, arguing that Eskom's concerns over the financial implications of transferring the transmission assets remained valid.

The union maintains that Eskom has loans backed by its assets and that any reduction in the value of those assets could have serious financial consequences.

NUMSA points to Eskom's improved performance

In defending the current Eskom leadership, NUMSA pointed to what it described as a significant improvement in the utility's operational and financial performance.

The union said Eskom had reached 453 days without load shedding under the current leadership.

It also highlighted Eskom's reported after-tax profit of R16 billion for the 2025 financial year, describing it as the utility's first full-year profit in eight years.

NUMSA further pointed to an unaudited profit of R24.3 billion in the first six months of the 2026 financial year.

The union questioned why Nyati should face calls for his removal while Eskom's performance has improved.

NUMSA said it remained fully supportive of both the Eskom board under Nyati and the executive leadership headed by CEO Dan Marokane.

Union rejects privatisation claims

NUMSA accused Eberhard and others of historically supporting reforms that have opened South Africa's electricity sector to private producers.

The union linked Eberhard to energy policy processes dating back to the late 1990s and early 2000s, including policies that facilitated the entry of Independent Power Producers.

NUMSA further alleged that the current restructuring of Eskom could ultimately benefit private interests through independent transmission projects.

The union insists that Eskom must remain a public utility and that electricity should continue to serve the public interest rather than being driven primarily by private profit.

Mass action and legal challenge threatened

NUMSA said it would not remain on the sidelines if the proposed restructuring resulted in Eskom assets being transferred away from the utility.

Jim said the union would mobilise its members and the broader public, while also pursuing legal avenues to protect Eskom's assets.

The union has called on South Africans to oppose what it describes as the removal of public assets from Eskom.

NUMSA's position is that Eskom's assets belong to the public and should remain under public ownership and control.

The union also rejected the suggestion that Nyati was obstructing structural reforms, arguing that the board's responsibility is to protect Eskom's financial sustainability while ensuring that any restructuring does not leave the utility worse off.

The allegations and claims made by NUMSA regarding Eberhard, government officials, the World Bank and the proposed restructuring have not been independently established.

NUMSA said it would continue to support the Eskom leadership and ended its statement with a warning: “Hands off Eskom leadership, hands off!”