BL Premium reports that public sector trade unions that have reached a wage agreement with the government say that they have given government “breathing space” for 2021, but will negotiate hard to win proper cost-of-living increases in 2022.
While not all trade unions signed the offer, a majority of worker representatives had signed the deal by Monday, making it binding on all parties. It includes a 1.5% pay progression increase (which is a standard condition of service) as well as a cash gratuity of R1,000 cash after tax, for all workers below the management level. Naptosa’s Basil Manuel said the cash gratuity was a very attractive offer at a time when “the shoe was pinching” as workers entered their second year without a wage increase. He went on to comment: “We have to acknowledge it’s not the ideal agreement; it is an agreement we have accepted in terms of where we are today... This time around, we have Covid-19, we have an economy looking bleaker by the minute. We could not pretend to the SA public that we don’t see that. The fact that we have settled is an indication that we, too, are concerned about SA.” At a briefing on Tuesday, unions noted that the fight had been deferred to the next round of negotiations, which starts in September. But, by offering such a generous cash gratuity, Public Service and Administration Minister Senzo Mchunu might have made his starting position for the next round difficult. Most employees, with the exception of those in the uppermost band, will benefit a lot more from the R1,000 gratuity than they would have had they got a CPI-related increase. The lowest paid received the equivalent of 11%.
- Read the full original of the report in the above regard by Carol Paton at BusinessLive (paywall access only)
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