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Nxesi gives Treasury go-ahead for penciling in of 3% public sector pay hike in medium-term budget statement

Details

nxesiBL Premium reports that Department of Public Service & Administration (DPSA) acting minister Thulas Nxesi on Tuesday gave the Treasury the “go ahead” to pencil in the contentious 3% final wage offer for public servants into the medium-term budget policy statement (MTBPS).

Nxesi’s decision is viewed as enabling finance minister Enoch Godongwana to provide certainty on the direction of the R665bn public sector wage bill when he delivers the policy statement in parliament on Wednesday. Nxesi explained the wage offer had to be secured ahead of the tabling of the MTBPS as there would not be another opportunity to fund wage increases once it had been tabled. Section 5(5)(b) of the Public Service Act empowers Nxesi to unilaterally implement the final offer on condition that any such offer does not reduce existing pay or other service benefits. He said implementing the offer would not signal the end of the wage talks as the department had requested the CCMA and the Public Service Co-ordinating Bargaining Council (PSCBC) to assist further in breaking the wage impasse. However, Nxesi’s decision could strain already tense relations between the government and labour, and possibly lead to a debilitating strike. The Public Servants Association (PSA) criticised Nxesi for displaying what it terms “sheer arrogance” and stated: “We condemn such conduct… If they implement the 3%, then there is no point in continuing with the wage talks.” PSA members elected to serve the government with a seven-day strike notice on Monday. Cosatu’s chief negotiator, Simon Hlungwani, said the labour federation would reflect on Nxesi’s decision and “comment when ready”.

  • Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only)


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