South African Union Takes Legal Step to Stop Eskom Pension Plan

South African labor union Solidarity began a legal process to block plans to use the state pension fund to help debt-stricken power utility Eskom Holdings SOC Ltd, Bloomberg News reported. The action adds to opposition from other employee groups resisting a proposal by the Congress of South African Trade Unions, the nation’s biggest labor organization, to cut Eskom’s debt by 254 billion rand ($17.2 billion). Cosatu had expected to reach a pact with business on the idea before President Cyril Ramaphosa presents his state-of-the-nation address on Thursday, but has pushed back that timeline. Solidarity said it wrote to the Government Employees Pension Fund and the Public Investment Corp., which manages the fund, demanding that they reject the Cosatu plan. Read more