Today's Labour News

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psaBusinessLive reports that according to the Public Servants Association (PSA), finance minister Tito Mboweni’s announcement that the Treasury would not foot the bill for public-sector wage hikes for the next three years will strain labour relations between government and employees.  

The union, which represents 240,000 workers in the sector, was reacting to the medium-term budget policy statement (MTBPS) presented by Mboweni on Wednesday.  In his speech, Mboweni said that the national and provincial departments would have to “absorb these costs within their compensation baselines”.  Public servants received above-inflation wage increases of 7.5% for 2018.  PSA GM Ivan Fredericks commented on Wednesday:  “Already over-stretched departments are now expected to absorb these expenses.  This will have a direct impact on employment with a ripple effect on employees and service delivery.  Should this, in fact, be the case, this will be in conflict with recent outcomes of the jobs summit and the public service collective bargaining indaba, and cannot be regarded as anything but negotiating in bad faith by the state as employer.”  The jobs summit resolved that there would be no retrenchments in the public service.


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