Today's Labour News

newsThis news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.

boardroomtableBloomberg writes that SA faces a stark choice in the forthcoming state wage negotiations, namely risk strikes by as many as 1.3m government workers or meet their pay demands and jeopardise its credit rating.  

After years of above-inflation increases, public-sector unions now want nothing less than "double-digit" raises from April 2018, in addition to better housing benefits.  The National Treasury has budgeted for average pay increases of no more than 7.3% in each of the next three fiscal years.  "We cannot afford the government wage bill.  We have got to either give people an increase below the rate of inflation, or we are going to have to employ fewer people," said leading economist Mike Schüssler.  Finance Minister Malusi Gigaba tabled a bleak picture of the nation’s finances last month with his medium-term budget policy statement (MTBPS).  Last week, Nehawu, which has 295,000 members and speaks for the largest number of public sector employees, said it would reject offers of less than 10% and claimed that pleas for austerity were undermined by reports of corruption at state companies.  State employees represented by the Public Service Association (PSA) want increases of 10% to 12%.  Nehawu’s Khaya Xaba said that, if the government wanted to offer members a single-digit increase like 7.3%, “then we have to withdraw our labour power and take the issue to the streets."

  • Read this report by Arabile Gumede in full at BusinessLive


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