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Government and a majority of public sector unions sign wage deal

Details

handshake thumb medium90 90BL Premium reports that the government and a majority of unions in the Public Service Co-ordinating Bargaining Council (PSCBC) on Friday signed a two-year, multi-term wage deal for a 7.5% increase.

The agreement came into effect on 1 April. Department of Public Service & Administration spokesperson Moses Mushi said the 7.5% increase was effectively the R1,000 after-tax cash gratuity at the value of 4.2% on the baseline, and a nominal increase of 3.3% across the board. The after-tax cash gratuity was set to expire on 31 March. “The non-pensionable cash allowance will be translated into the pensionable increase on the baseline with effect from April 1 2023, without disadvantaging any employee in terms of the cash net effect into the pocket,” Mushi said. The pay deal also includes a pay progression of 1.5% for all qualifying employees. In the final year, employees will receive an increase linked to projected consumer price inflation (CPI), meaning if CPI falls below 4.5% in 2024/25, workers will receive increases of 4.5%. If it surges above 6.5%, the employer will implement a 6.5% increase. The agreement was signed by leaders of Hospersa, Naptosa, the PSA and Sadtu. The four unions combined represent more than 53% of the estimated 1.3-million public servants in the country. Nehawu, Denosa and Sapu opted not to sign the agreement. Those unions are still in a dispute with the employer regarding the 2022/23 financial year, in respect of which the employer unilaterally implemented a 3% pay rise.

  • Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only)
  • Read too, SA’s unions, government agree 7.5% wage hike, at Moneyweb


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