BY PETER McINNES
JOHANNESBURG — Around 480 voluntary retrenchments have been offered to municipal workers at the recently privatised Kelvin power plant.
Kelvin, a coal-powered electricity station, provides 25% of Johannesburg's electricity needs. The US-based AES corporation currently owns 50% of the power plant with an option to purchase the other 50% in the future.
AES is the first international energy provider corporation to gain access to the South Africa's potentially lucrative electricity generating sector. (AES is the company which is attempting to construct a power generation plant in Geelong, Australia, against the community's wishes.)
The electricity-generating sector is being restructured with a view to privatising electricity generating capacity in line with the World Bank's prescriptions for a fully liberalised "competitive" electricity market.
AES's purchase broke the government's monopoly on electricity provision. The company was granted a licence by the South African government to trade in electricity late last year.
AES lost no time in confirming the fears of South African public sector workers of the impact of privatisation.
The voluntary retrenchments represent almost three-quarters of the current workforce at Kelvin. This massive reduction of the workforce is a frightening portent of the potential for job losses in a fully liberalised power generation market.
The newly downsized power plant has begun operating according to US models of labour relations. Rob Rees, of the South African Municipal Workers Union has seen a marked change in the culture which remaining SAMWU members work in. The new management appears very negative towards unions.
When the deal was being finalised in July 2001 ANC councillor Brian Hlongwa, chairperson of the city's Municipal Entities Portfolio Committee, said that one of the reasons driving the sale was the need to protect 650 jobs at Kelvin. The three councillors further justified their role on the newly formed board of directors in terms of preventing job cuts. However, as soon as AES took over formal control in December the massive job cuts began.
The agreement between SAMWU and management that the sale of the 50% stake to AES would not result in job losses was circumvented through the offering of what was perceived by a fearful and demoralised workforce to be a generous package, including three years salary, a US$1000 bonus and some re-location expenses and training (This information has been provided by AES and is not confirmed). However, in the current economic climate with high levels of unemployment, a quick return to the workforce will be unlikely.
From Green Left Weekly, February 27, 2002.
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