BusinessLive reports that seemingly in a quest to avoid a strike on the eve of the 2019 general election, the government has tabled a draft wage agreement with several proposals favourable to labour unions.  

But, the implementation of these proposals could lead to a surge in the public wage bill, which the Treasury has been trying to contain.  The draft agreement was tabled by government negotiators at the Public Service Co-ordinating Bargaining Council (PSCBC) last week.  Although there was no agreement on salary hikes, the government has given in to a number of demands, such as the removal of a spousal-benefits restriction that extended housing allowances to only one spouse if a couple was employed in the public service.  In return, unions lowered their demand for housing allowance increases from R2,500 a month to R1,500.  The establishment of a bursary scheme for children of public servants was one of the conditions agreed to, as well as a housing scheme proposal.  Government has offered to hike pay for employees on levels one to seven by inflation (CPI) plus 1.5%; levels eight to 10 by CPI plus 1%; and levels 11 and 12 by CPI only for the first year of the three-year deal.  Workers now want salaries increased by CPI plus 3% for the lowest levels, with a 2% CPI add-on for levels eight to 10 and 1% for 11 and 12.

• Read this report by Theto Mahlakoana in full at BusinessLive

Get other news reports at the SA Labour News home page