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BL Premium reports that union leaders for 1.3-million public servants have trimmed their wage demands to 6.5%, raising the prospect of breaking a deadlock that threatens to shut down schools, hospitals and government departments.
Labour and the government have been locked in talks for weeks after unions rejected the government’s offer of a 2% pay increase plus the extension of a R1,000 cash gratuity. They had been demanding as much as a 10% increase until last week when, according to Frikkie de Bruin of the Public Service Co-ordinating Bargaining Council (PSCBC), they cut it to 6.5%. The trimmed figure raises the possibility of ending a dispute that has cast doubt over finance minister Enoch Godongwana’s pledge to restrict growth in the R665bn public sector salary bill. “The parties remain optimistic in terms of finding common ground,” De Bruin indicated, while suggesting that the government might need only to convince union leaders to accept that its wage deal proposals equated to a 6.5% pay increase to get the deal over the line. The state has argued that its R1,000 after-tax cash gratuity equates to 4.5%, taking its overall pay rise offer to 6.5% when combined with a 2% cost-of-living adjustment offer. Simon Hlungwani, convener of Cosatu’s joint mandating committee, reported that the labour federation has embarked on a mandate-seeking process on the employer’s offer, which he expected would be concluded on Friday. The Public Servants Association (PSA) has described the 2% offer as “offensive to employees” who have not received increases for the past three years. De Bruin noted that the PSA had declared a mutual interest dispute to conciliation at the PSCBC on 8 July. The matter is set down for conciliation on 3 August. He said if there was no resolution at conciliation level, “the party may exercise their right” and embark on strike action.
- Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only)
Get other news reports at the SA Labour News home page