Today's Labour News

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southafricalogoBusinessLive reports that Finance minister Tito Mboweni on Wednesday gave little indication of how the supplementary budget would affect the public wage bill, except for saying that nearly half of all consolidated revenue would go towards the compensation of workers.  

His budget speech laid out the full extent of the damage the Covid-19 crisis has had on the state’s already weak finances.  “We value the important work public servants do. [Public service and administration] minister Senzo Mchunu is negotiating with our partners in the labour movement to find a balanced solution that sets compensation at an appropriate, affordable and fair level,” Mboweni stated, adding that public finances were dangerously overstretched.  In February, the minister pencilled in huge cuts to the public-sector wage bill, indicating that the government wanted to slash the total public wage by R160.2bn over the next three years.  But, public sector unions took this as a ‘declaration of war’.  Since then, the increases in the final leg of the three-year wage agreement signed in 2018, which were scheduled to have taken effect on 1 April, have not been honoured.  Some public-sector unions have consequently taken the government to court over its refusal to implement a standing wage agreement, while others have declared a dispute at the Public Service Co-ordinating Bargaining Council over the matter.

  • Read the full original of the report in the above regard by Genevieve Quintal at BusinessLive


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