Moneyweb reports that lawyers for public sector unions argued in court on Wednesday that, although SA’s fiscal position has gradually weakened over the past three years, the government cannot walk away from implementing the final leg of a three-year wage increase deal.
Trade unions – including the Public Servants Association (PSA) and a number of Cosatu affiliates – approached the Labour Appeal Court to compel the government to stick to the terms of their 2018 wage agreement. Despite 2020 being the final year of the three-year deal, the government unilaterally announced a freeze on public sector wage increases earlier this year in line with its bid to save R160 billion over the next three years. Adv. Jeremy Gauntlett, appearing on behalf of Finance Minister Tito Mboweni, argued that the wage agreement was invalid and unenforceable given that the public finances have vastly changed since the agreement was signed, due in part to the Covid-19 pandemic. However, Adv. William Mokhare on behalf of Nehawu pointed out that as recently as April, the government had indicated a commitment to unions that it would comply with the wage agreement, despite the government experiencing “difficulties” with implementation. Additionally, Mokhare said the decision to sign the 2018 agreement with unions was approved by the cabinet so it should be enforced. Adv. Ngwako Maenetje, who appeared on behalf of three unions, said in the face of the impossibility of the enforcement of the agreement the government could not walk away. Rather the agreement remained valid and the parties were entitled to a “just and equitable” remedy.
- Read the full original of the report in the above regard by Thando Maeko at Moneyweb
Get other news reports at the SA Labour News home page