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SABC News reports that trade unions in various sectors of the economy are gearing up for what could be another tough round of wage talks this year, but labour experts have cautioned against unrealistic expectations.
The talks will take place in a very difficult economic environment characterised by high inflation, a poor trading environment and job cuts. However, public sector workers already have a multi-year agreement in place this year. Unions commonly use consumer price inflation (CPI) as a yardstick during salary negotiations and the rate is expected to average 5%. The few unions that have already tabled their wage demands for this year are seeking wage hikes of around 7%. It is expected that most employers could eventually settle between 5% and 6%. Seifsa, an employer federation in the metals and engineering sector representing 1,300 employer companies, indicated that pre-bargaining talks had already started in the sector and said it was hopeful for a fruitful round of talks with unions when they kick off in March. Labour expert Tony Healy commented: “To employers if you possibly can, try and find a way to pay a wage increase that is even if it’s marginally above CPI because you can to some degree justify that you are making an effort and making the kind of sacrifices, financially, to at least try and maintain and slightly improve employee lifestyle by paying above inflation. Not much! It can be a couple of percentage points. I think that’s helpful and from a trade union point of view it’s again realistic.” Economist Jannie Rossouw said: “There must also be good faith negotiations. To go into negotiations suggesting an increase of 15% plus an increase in housing allowances, medical aid allowances, overtime allowances, etc. I cannot regard those as good faith negotiations.”
- Read the full original of the report in the above regard by Katlego Legodi at SABC News
Get other news reports at the SA Labour News home page