PAIA manual - part 2

PAIA Manual (Part 2)

STAKEHOLDER PARTICIPATION

STAKEHOLDER REPRESENTATION AND CONSULTATION ON POLICY AND EXERCISE OF POWERS
Eskom regards stakeholders as important to it’s business and values it’s input and feedback. Eskom interacts with it’s stakeholders by participating in forums and committees with organised labour and interaction with it’s customers and investors. Government guides policy within Eskom, particularly the Department of Mineral and Energy Affairs, the Department of Public Enterprises and the National Electricity Regulator. Information gathered from all groups is used to determine policy within Eskom.

Participative structures with organised labour
Eskom has established appropriate participative structures with organised labour to ensure that employees are able to meaningfully influence decisions that affect them. The process of influencing decisions includes, but is not limited to, mechanisms for consultation and information sharing. Decisions are influenced though various forums with organised labour, such as the Business Unit (BU) Forum, the Group Forum, the Central Consultative Forum, the Central Bargaining Forum, the Strategic Forum and the Restructuring Committee. These various committees and forums are described below:

The Business Unit Forum
A Business Unit Forum (BUF) is a structure consisting of BU management and BU part-time shop stewards. The part-time shop stewards may be assisted by full-time shop stewards at these meetings.

All BU-related matters are discussed at this forum. As far as possible, decisions are based on consensus. All relevant information is made available to all parties at the forum in order to facilitate discussions. Management reserves the right to make and implement decisions after the process of consultation has taken place. The trade unions reserve the right to declare a dispute if they are dissatisfied with a decision taken by management.

The Group Forum
The Group Forum operates in a way similar to that of the BU Forum the difference being that the Group Forum handles issues that have a Group wide impact. This forum follows the same principles as set out in the case of a BU Forum.

The Central Consultative Forum (CCF)
The CCF is a forum for national consultation and information sharing. All matters that have an Eskom-wide impact are dealt with at this forum. All the principles that apply to the BU Forum and Group Forum also apply here.

The Central Bargaining Forum (CBF)
This is a forum where bargaining of salaries and conditions of service occurs on an annual basis. Issues handled at this forum have an Eskom-wide impact and may not be handled at any other forum. If issues are raised the CCF or BU Forum, they need to be referred to this forum.

The Strategic Forum (SF)
This is a forum where high-level strategic issues and issues of principle are debated. It, however, remains an information-sharing forum, and may not be used as an appeal body for the other structures. Attendance at this forum is limited to senior members of management in both Eskom and the trade unions.

The Restructuring Committee (RC)
This is not an Eskom structure in terms of the Recognition Agreement between Eskom and trade unions. The structure emanates from the National Framework Agreement (NFA) between Government and the Trade Unions. Although Eskom is not party to the NFA, Eskom has undertaken to abide by the spirit of the NFA and reflect it in its processes and discussions to make it operational and effective.

The RC provides a mechanism for Eskom to discuss the implementation of government policy decisions, with the trade unions in the most appropriate way, in as far as restructuring of state-owned enterprises is concerned.

The RC comprises members of Eskom's Executive Management Committee (EMC) and the General Secretaries of the trade unions. Eskom management and trade unions alternate in the chairing of the RC.

In the event of any disputes arising from the RC, the matter is referred to the Six-a-Side, a dispute resolution committee comprising government and trade unions.

Interaction with customers
Eskom values its customers and regularly communicates with them. Feedback is regularly obtained from our customers and suggestions provide valuable input into our business.

Interaction with investors
Eskom communicates regularly with its investors ensuring that they are informed of changes within Eskom as well as regular road shows that are conducted around the country.

DME, DPE and NERSA
With the restructuring of the Electricity Supply Industry, the National Electricity Regulator of South Africa (NERSA) will consider the alternative institutional and electricity market options available to allow competition and customer choice and therefore remove Eskom's monopoly in electricity generation. The NERSA believes that it is important for our country to have a vision for the electricity supply industry so that we all know the direction in which we are going. Change in the industry must be planned, phased and ongoing. To ensure the success of the industry, the NERSA promotes the following developments:

• The establishment and operation of an effective and efficient rationalised, viable electricity supply industry
• Eliminating monopolies in the generation and distribution sectors
• Rationalising end-use prices and tariffs
• Giving customers the right to choose their electricity supplier
• Creating an electricity market
• Introducing competition into the industry, especially in the generation sector
• Addressing the impact of generation, transmission and distribution on the environment
• Permitting open, non-discriminatory access to the transmission system
• Levelling the playing fields between distributors of electricity
• Encouraging private sector participation in the industry.

The Department of Mineral and Energy Affairs (DME) greatly influences policy within Eskom. The department currently is directing the industry restructuring initiative specifically focussing on the electricity distribution industry (EDI) and the electricity supply industry (EDI) to enable independent power producers to enter the electricity generation market.

While the department of Mineral and Energy Affairs influences the structure of the organisation the Department of Public Enterprises(DPE) influences its financial position in the marketplace as well ensuring effectiveness and efficiency through sound corporate governance.

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SUBJECTS AND CATEGORIES OF INFORMATION WITHIN ESKOM

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Public Information

For additional information available online, please look at "Facts & Figures" published on the Eskom Internet site

Other information may be found on our website http://www.eskom.co.za  

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USEFUL REFERENCES

Websites

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