Business Day *Public service strike mounts as offer rejected as insult* *Luphert Chilwane, Business Day, Johannesburg, 2 August 2010* * *PUBLIC sector unions yesterday rejected Public Service and Administration Minister Richard Baloyi 's call for them to accept the government's final wage offer of a 6,5% increase and a R630 housing allowance, vowing to press ahead with their strike over the next few days.
The Public Servants Association , which represent s 200000 employees, will resume strike action today while the South African Democratic Teachers Union (Sadtu), representing 243000 teachers, will begin a series of lunchtime pickets. The Democratic Nurses Organisation of SA (Denosa) is expected to down tools from Thursday.
The consequences of 1,3-million state employees --- teachers, nurses, police and administrators --- going on strike is likely to strain the operations of government departments, ports of entry, hospitals and traffic departments. It will also come at a great cost to the broader economy.
Last week, Mr Baloyi urged labour to consider the final offer, saying that it was reasonable and fair, given the implications for all of SA's people.
"The offer as tabled by the employer on Thursday is a reasonable and fair offer, given the trends developed in relation to how the state determines salary increases. The trend informs us of a salary adjustment that is based on inflation for the period under discussion plus a moderate real wage increase," he said.
Mr Baloyi said the resolution to implement the settlement would be signed this week.
The unions have rejected the offer outright. "We are calling upon the employer not to insult workers with such a ridiculous offer of a mere R10 from R620 to R630 for housing allowances and an unacceptable 6,5% for salary increases," said Sadtu general secretary Mugwena Maluleke yesterday. "A R10 improvement to the allowance is ridiculous and makes a mockery of the collective bargaining and cannot be taken seriously."
Starting from today, "we will embark on lunchtime pickets, not attend any meetings, workshops or training convened by the employer --- building up to a full-blown strike next week," he said.
Denosa spokesman Asanda Fongqo said it did not view the government's final offer as a revised offer. "I don't think the employer is serious about averting the strike."
The Congress of South African Trade Unions said it would put pressure on the government to come up with a "realistic" offer.
The unions are demanding an 8,6% salary hike, a R1000 housing allowance per month and the equalisation of medical aid subsidies.
Meanwhile, the African National Congress (ANC) has warned that increases above the inflation rate could cripple the country's economy. "Our interest is to see the strike being averted to avoid any collapse of public services. At this stage we would like to give the negotiation processes a chance," said ANC spokesman Brian Sokutu.
"However, we do appeal to labour unions to understand that any increase above inflation is bound to have an adverse effect on the economy," he said.
Mr Baloyi singled out affordability and inflation as major reasons why the government could not move beyond the allocated wage offer. He said the total amount budgeted for personnel- related expenses this financial year was R23,5bn and it would require an extra R3,7bn to meet the unions' demands.
The Public Service and Administration Department said the principle of no work, no pay would apply to public servants affiliated to the Public Servants Association for their involvement in strike action last week.
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