BusinessLive reports that public sector wage talks, in which considerable progress had been made prior to the tabling of the budget, have begun to falter as unions say they may need to rethink their positions.
Cosatu’s joint mandating committee chairman, Mike Shingange, said labour’s perspective had been affected by the recent VAT and fuel levy increases and they now had to measure the impact of the increases on inflation and adjust their demand accordingly. Newly appointed Public Service and Administration Minister Ayanda Dlodlo said on Friday she would meet with public sector union leaders to assure them that wage negotiations would not be "unnecessarily derailed" by the leadership changes in the Cabinet. Several critical conditions of service issues in the draft agreement had been concluded by the time Dlodlo took office, with the exception of the sticky point of salary increases. Union leaders said positive progress had been made since the government offered to hike pay for employees on levels one to seven by the consumer price index (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 a three-year deal.
- Read this report by Theto Mahlakoana in full at BusinessLive
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