Eskom has begun offering voluntary retrenchment packages to senior staff, the power utility said on Thursday

It said there would be no forced retrenchments and the process, which will unfold over March and April, would not affect lower level, non-managerial staff.

“There will be no forced retrenchments,” Eskom added.

“Eskom will ensure that no critical skills will be lost as a result of the programme, and management will take every precaution to ensure that the VSP (Voluntary Severance Package) process caters to the best interests of Eskom.”

The company said that it would spend R400 million on the process, but the money would be recovered through the resulting savings within a year.

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“The purpose of the separation process is to rationalise management layers, which will lead to an efficiently run company.”

The state-owned power utility is struggling to service debt of R450 billion.

A proposal by the Congress of South African Trade Unions (COSATU) to dip into the Government Employees Pension Fund to reduce the debt by R254 million, has been met with condemnation by opposition political parties and other labour organisations.

COSATU is vehemently opposed to job cuts at Eskom and other public companies.

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Author: ANA Newswire