Business Report writes that according to Finance Minister Tito Mboweni, Covid-19 has rendered the 2018 three-year wage agreement with public sector unions invalid and unenforceable, given vastly changed circumstances.
Mboweni indicated to the Labour Appeal Court in his 33-page heads of argument submission that the enforcement of the 2020 wage increase clause in the Public Service Co-ordinating Bargaining Council’s 2018 collective agreement would cost the fiscus R37.8 billion. He argued that the three-year wage agreement signed in 2018 was non-compliant with a mandatory statutory requirement imposed by law to ensure fiscal affordability and sustainability. Public sector unions took the government to court after it reneged on the April 2020 wage increase as laid down in the multi-year wage agreement. The unions on Wednesday rejected a last-minute proposal from government to delay the court hearing in a bid to reach an out-of-court settlement. Advocate William Mokhari SC, representing Cosatu affiliate Nehawu, pointed out that the government had not approached unions to renegotiate the implementation of the agreement, but had simply asserted that the agreement was not valid. But Advocate Jeremy Gauntlett SC, representing the National Treasury, argued that section 79 of Public Service had not been complied with as it required Treasury sign-off for the provision of additional funds, which had not been provided.
- Read the full original of the report in the above regard by Siphelele Dludla and Sechaba Nkosi at Business Report
- Read too, SA’s most vulnerable may ultimately pay the price for higher public sector wages, court hears, at News24
Get other news reports at the SA Labour News home page