INDUCTION PROGRAMME Employee Relations Eskom Sound employee relations

INDUCTION PROGRAMME Employee Relations @ Eskom “Sound employee relations in the work place is our business. ”

Industrial Relations System @ Eskom • Both Eskom and the trade unions have willingly accepted the formidable challenge to bring about the desired change. Above all, the change can only come about if both parties build a culture based on trust, openness, and understanding of each other’s position. • Eskom acknowledges that its employees have the right, inter alia, to organise, to associate and to bargain collectively. • Eskom believes in and values the participation of its employee and trade unions in the management of sound employee relations. 2

Industrial Relations System @ Eskom • Both Eskom and the trade unions have willingly accepted the formidable challenge to bring about the desired change. Above all, the change can only come about if both parties build a culture based on trust, openness, and understanding of each other’s position. • Eskom acknowledges that its employees have the right, inter alia, to organise, to associate and to bargain collectively. • Eskom believes in and values the participation of its employee and trade unions in the management of sound employee relations. 3

Eskom’s Main Agreements The following main agreements between Eskom and the Trade Unions exist: • Recognition Agreement • Disciplinary Procedure • Grievance Procedure • Eskom’s Conditions of Service • Agency Shop • Full Time Shop Stewards Eskom and the Trade Unions enter into a wide variety of separate procedural and substantive agreements from time to time, in order to regulate specific matters of mutual concern, including local business unit agreements. 4

Eskom’s Recognition Agreement Purpose: • Regulates relationship between Eskom and Trade Unions • Formalizes collective bargaining and regulates conflict in the work situation • Eskom/Trade Unions commit themselves to: • Co-operate - mutual respect • Promote sound ER • Prevent labour unrest • Orderly settlement of disputes within the framework of agreement 5

Recognition Agreement cont. Examples of Provisions • Participative structures • Mechanisms for dispute settlement • Roles and rights of shop stewards (including Fulltime Shop stewards) • Meetings on Eskom Premises 6

Recognised trade unions in Eskom (3) • Solidarity • National Union of Metalworkers of SA(NUMSA) • National Union of Mineworkers (NUM) Who forms part of the Bargaining Unit? • All Task level 4 - 13 employees in Eskom (NB! Excludes M, P, S and E bands / Task level 14 -23) 7

Structures: • Strategic Forum (SF) The SF is where high‑level strategic issues and issues of principle are debated. This is an information‑sharing forum and no negotiations or discussions on operational issues take place. Senior representatives from all parties attend this forum. • Central Bargaining Forum (CBF) The CBF is the forum where matters such as annual salary increases, conditions of Services and trade union organisational rights are negotiated. • Central Consultative Forum (CCF) The CCF is a forum for all national consultations and sharing of information, all matters that have an Eskom-wide impact will be dealt with at this forum. 8

Structures cont: • National Divisional Forum (NDF) The NDF is the forum for all National Divisional consultations and sharing of information. All matters that have a divisional-wide impact and fall within the decision-making powers of the MD concerned will be dealt with at this forum. • Business Unit Forum (BUF) It’s a consultative structure at Business Unit level consisting of PTSS and Management of that Business Unit. This structure deals with matters affecting the Bargaining Unit. 9

Dispute settling Mechanism (DSM) • All disputes that arise from negotiations in the CBF and disputed related to the interpretation and/or application of collective agreements will be resolved by appointing a private independent organisation. • For all other disputes outside the CBF, whether individual or collective, the parties who declare a dispute may select either a private agency or referral to the CCMA. • If the applicant/party chooses the private agency route, they have to pay 50% of the cost of proceedings. 10

Agency Shop Agreement • The Agency Shop Agreement requires that Eskom deducts an agency fee from the salaries of all those employees from Task level 4 to 13 who are not members of the trade unions recognised by Eskom. If an employee is a member of a trade union that is not recognised by Eskom, he/she also has to pay the agency fee. • The agency fee deducted by Eskom will be the same as the lowest subscription paid by the members of the trade unions. 11

Eskom Disciplinary Code and Procedure Scope: Applies to all Eskom - employees • Eskom considers the maintenance of discipline to be of paramount importance and expects every employee to act correctly and irreproachably. Eskom undertakes, however, to ensure that every employee shall at all times be treated decently and fairly. 12

Eskom’s Grievance Procedure • Definition of a Grievance “Any dissatisfaction or feeling of injustice arising out of the employment relationship which has not been resolved in the normal course of events”. The definition of a grievance covers both “grievances of right” and “grievances of interest”. A “grievance of right” applies when the employee claims that Eskom has not given him what is rightfully his, or Eskom has not respected a right, which he has. A “grievance of interest” applies when an employee has no claim in law against Eskom but he feels that he has been unfairly treated. • Purpose To provide a formal channel to enable employees to bring to Management’s attention their dissatisfaction with a particular issue/decision/person - which obliges Management to respond. 13

Disciplinary sanctions • 6 months written warning • 12 months final written warning • Suspension without pay minimum 7 days and maximum 14 days • Dismissal 14

Disciplinary Processes • Disciplinary enquiry-chaired by manager/supervisor • Disciplinary hearing- internal chairperson • Pre-dismissal arbitration- commissioner • Appeal • Suspension with pay pending investigation • Dispute 15

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