Financial Mail writes that the state’s coffers are bare and President Cyril Ramaphosa’s administration is on a desperate drive to rein in the ballooning public sector wage bill and pull state-owned enterprises (SOEs) out of intensive care.
Negotiations between the government and a number of unions are not limited to acrimonious talks at the Public Service Co-ordinating Bargaining Council (PSCBC). Haggling between Eskom, Transnet and at least five unions is also under way. Public service & administration minister Senzo Mchunu earlier this month took the novel step of inviting citizens to help break the inevitable deadlock after tabling a 0% pay increase for public servants. The unions involved include a number of Cosatu affiliates as well as the Public Servants Association. An independent facilitator has been brought in to mediate. But, according to Mchunu, wage prudence will apply across the government, implying that the hard line over increases will be mirrored in SOEs. Talks between Transnet and its unions deadlocked two weeks ago, after the state’s logistics giant opened with a 0% offer and a proposal to curb benefits. It moved slightly to a 3% nonpensionable allowance after labour balked, but refused to guarantee no retrenchments. Last week, bargaining between Eskom and the National Union of Mineworkers (NUM), the National Union of Metalworkers of SA (Numsa) and Solidarity was temporarily suspended at the unions’ request. The unions are set to meet CEO André de Ruyter next week to discuss Eskom’s turnaround strategy and transformation — matters ostensibly outside the scope of the bargaining forum. NUM and Numsa, long at loggerheads over organising workers at Eskom, have formed an alliance at the power utility this time around. Apparently, they are in effect backing each other in the wage talks and have adopted a similar stance on key issues facing the energy sector, including wages, conditions and renewable energy.
- Read the full original of the report in the above regard by Natasha Marrian at BusinessLive (paywall access only)
Get other news reports at the SA Labour News home page