Eskom's move to offer severance packages overdue: Economist
Economist Mike Schussler has applauded Eskom's plan to offer some of its managers severance packages.
The power producer says it will be giving the voluntary packages to its non-core management staff.
Those who are employed as ordinary staff but are aged 60 and above will also be made an offer.
The utility plans to spend R400 million for the process which is a cost cutting exercise.
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Schussler, says the move is overdue,"In the long run, in other words in the next 6 months, it will hurt them but it will make a lot more sense in a year's time it will help them a lot because they are over staffed."
"They must just be careful that they select the right people because sometimes the people over 60 are just those people that have got enough experience so they know what's going on but yes it is needed," he says.
