After last week’s sobering news that our economy had shrunk by 2.2% in the first quarter - the biggest contraction in almost a decade - other harsh statistics followed indicating a dispiriting drop in business confidence.
These news items were a harsh reminder that South Africa’s revival, following watershed leadership changes in December, would be a long slog that would require concerted and sustained effort from all stakeholders.
It was a wake-up call we needed to put our shoulders to the wheel and avoid damaging the tiny green shoots emerging in our economy. The last thing we needed was load shedding to resurface.
We began the year upbeat even though our economic crises were apparent. As President Cyril Ramaphosa launched a global road show to reassure investors at the World Economic Forum in Switzerland in January, Malusi Gigaba, then finance minister, warned there might not be an economy to talk of when Ramaphosa got back unless drastic action was taken to rescue Eskom.
Thankfully, action was taken and the spectre of Eskom going “belly up” receded. But a huge task still lay ahead.
Much commendable work has been done since. But this week load shedding returned to haunt us.
The way the pay talks were handled left a lot to be desired. Punishing workers with a zero increase offer for the sins of past leaders was tantamount to gambling with the one state-owned company that occupies a crucial place in our economy.
Now that we have been reminded of the dark days of load shedding, management and the unions could return to the negotiating table with mutual respect.
But the showdown could, and should, have been avoided. Eskom’s challenges will take time and bold action to resolve. Besides being tainted by corruption, the utility has been run in an unsustainable way for years.
It relied on year-on-year tariff increases, loans and government bailouts, paying scant attention to over-staffing, over-spending, poor efficiencies and shrinking revenue.
Now tough choices must be made, giving rise to talks on staff reduction, initially to be dealt with through natural attrition and pay restraint.
Care must be taken with whatever is decided, averting a stand-off between boardroom and labour power.
Let us hope all involved learnt their lessons. South Africa can ill afford to have Eskom’s lights dim, reopening a wound in our national psyche.