NUM starts court action against Ramaphosa over Eskom restructuring plans

  • NUM historically backed Ramaphosa to rise to the ANC presidency in 2017 but the approval of Eskom restructuring has caused friction.
  • The union has raised concerns that the restructuring could lead to the fragmentation of Eskom and greater private-sector dominance
  • NUM vows to defend 'energy sovereignty, public ownership, and workers’ livelihoods'.

The National Union of Mineworkers (NUM) is preparing legal action against President Cyril Ramaphosa and the state over plans to restructure Eskom.

This comes after Ramaphosa endorsed Phase I report of the Eskom Restructuring Task Team, which clears path to create an independent, state-owned Transmission System Operator (TSO).

Mpho Phakedi, NUM secretary-general, said the union had taken a firm decision to challenge the restructuring process in court after its extended national executive committee (NEC) meeting in Pretoria last week.

Independent entity ‘could threaten jobs’

He warned that the creation of an independent TSO could threaten jobs and public ownership of the electricity grid.

“The union is currently in active consultation with its legal team, having held multiple legal sessions to prepare formal court action to challenge the decision,” said Phakedi.

NUM historically backed Ramaphosa to rise to the ANC presidency in 2017 but the approval of Eskom restructuring has caused friction.

The legal challenge centres on the government’s decision to establish a TSO and transfer strategic transmission assets and functions from Eskom’s National Transmission Company of South Africa (NTCSA) to the new entity.

Ramaphosa announced in his 2026 State of the Nation Address that a fully independent state-owned transmission entity would be established to own and control transmission assets and operate the electricity market.

NUM fears fragmentation of Eskom

Phakedi raised concern that the restructuring could lead to the fragmentation of Eskom, greater private-sector dominance and the erosion of public control over strategic electricity infrastructure.

The union argues that government should first address Eskom’s financial challenges, including the growing debt owed by municipalities, before making structural changes that could create uncertainty for workers and affect the utility’s operations.

‘Electricity remains a strategic national asset’

“The NEC unequivocally rejects the gradual privatisation and liberalisation of South Africa’s electricity grid. Electricity remains a strategic national asset. We call on government to halt all steps towards market liberalisation until comprehensive social compact is reached with labour and key stakeholders.

“In addition to our ongoing legal proceedings, should government continue to proceed with reforms that threaten public ownership, undermine Eskom’s strategic mandate, or comprise workers’ rights without genuine consultation, the NEC stands ready to deploy all available constitutional and organisational measures – including worker mobilisation – to defend energy sovereignty, public ownership, and workers’ livelihoods,” said Phakedi.

 

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  • The National Union of Mineworkers (NUM) plans to take legal action against President Cyril Ramaphosa and the state over Eskom's restructuring plans.
  • The legal challenge follows Ramaphosa's endorsement of a report allowing the creation of an independent, state-owned Transmission System Operator (TSO).
  • NUM fears the restructuring could threaten jobs, public ownership, and lead to Eskom fragmentation and greater private-sector control.
  • The union insists the government should address Eskom’s financial issues before proceeding with structural changes that could harm workers and operations.
  • NUM's national executive committee rejects the privatisation and liberalisation of South Africa’s electricity grid and warns of possible worker mobilisation if reforms proceed without consultation.
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The National Union of Mineworkers (NUM) is preparing legal action against President Cyril Ramaphosa and the state over plans to restructure Eskom.

This comes after Ramaphosa endorsed Phase I report of the Eskom Restructuring Task Team, which clears path to create an independent, state-owned Transmission System Operator (TSO).

Mpho Phakedi, NUM secretary-general, said the union had taken a firm decision to challenge the restructuring process in court after its extended national executive committee (NEC) meeting in Pretoria last week.

He warned that the creation of an independent TSO could threaten jobs and public ownership of the electricity grid.

The union is currently in active consultation with its legal team, having held multiple legal sessions to prepare formal court action to challenge the decision,” said Phakedi.

NUM historically backed Ramaphosa to rise to the ANC presidency in 2017 but the approval of Eskom restructuring has caused friction.

The legal challenge centres on the government's decision to establish a TSO and transfer strategic transmission assets and functions from Eskom's National Transmission Company of South Africa (NTCSA) to the new entity.

Ramaphosa announced in his 2026 State of the Nation Address that a fully independent state-owned transmission entity would be established to own and control transmission assets and operate the electricity market.

Phakedi raised concern that the restructuring could lead to the fragmentation of Eskom, greater private-sector dominance and the erosion of public control over strategic electricity infrastructure.

The union argues that government should first address Eskom's financial challenges, including the growing debt owed by municipalities, before making structural changes that could create uncertainty for workers and affect the utility's operations.

The NEC unequivocally rejects the gradual privatisation and liberalisation of South Africa’s electricity grid. Electricity remains a strategic national asset. We call on government to halt all steps towards market liberalisation until comprehensive social compact is reached with labour and key stakeholders.

“In addition to our ongoing legal proceedings, should government continue to proceed with reforms that threaten public ownership, undermine Eskom’s strategic mandate, or comprise workers’ rights without genuine consultation, the NEC stands ready to deploy all available constitutional and organisational measures – including worker mobilisation – to defend energy sovereignty, public ownership, and workers’ livelihoods,” said Phakedi.

 

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