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BL Premium reports that as parties in the Public Service Co-ordinating Bargaining Council (PSCBC) continue to look for mechanisms to break their wage deadlock, Fitch Ratings said on Tuesday the government was unlikely to meet its goal of freezing public-sector salaries for three years.
The government’s proposed reductions to the wage bill, as highlighted in the 2021 Budget Review, amount to R303.4bn from 2020/2021 to 2023/2024. Fitch commented: “Compensation of public-sector workers accounts for a large share (about 35%) of government expenditure. Ongoing negotiations on a new wage deal are likely be difficult and the government is unlikely to meet its target of agreeing on a wage freeze, leading to the risk of expenditure overruns.” The ratings agency pointed out that payroll and state-owned entity reforms would be crucial for fiscal consolidation. Wage negotiations at the PSCBC reached a deadlock on 23 April after Cosatu-affiliated unions and the Public Servants Association (PSA) rejected the government’s zero cost-of-living adjustment for 2021/2022. The parties then agreed to embark on facilitated negotiations. Reuben Maleka of the PSA reported further: “The PSA declared a dispute [on Tuesday] after three days of facilitation that failed [to yield results]. The PSCBC has 30 days to resolve the dispute, failing which a certificate of non-resolution will be issued. We will then issue a seven-day notice to the government [notifying it of our intention] to start the strike action.” Mugwena Maluleke, chief negotiator for Cosatu’s public-sector unions, said: “We are still in a facilitation process,” when asked for comment.
- Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (paywall access only)
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