Business Day
*Benefits to top wage talks between state and unions* *Alistair Anderson, Business Day, Johannesburg, 4 May 2012*WAGE talks between public sector unions and the government this year are likely to see heightened demands for better benefits, even if wage demands themselves are moderated.
Unions and workers are likely to be particularly militant about benefits, unlike during previous negotiations, when benefits --- housing, transport and living-out allowances --- have often fallen off the table in favour of actual wage hikes. This year, unions say allowances deserve more attention, given the wage improvements already secured.
Talks are in progress at the Public Service Co-ordinating Bargaining Council, the state having opened with an offer of 4%. This has since been revised to 5,9%. The Unions' opening demand was 10% --- a far cry from demands of 20% in recent years.
Even though progress has been made on the wage front, the National Education, Health and Allied Workers Union (Nehawu) this week said it was demanding paid maternity leave for its members, among other allowances.
The South African Municipal Workers' Union (Samwu), which negotiates in a separate bargaining council from Nehawu and other public sector unions, has several demands on allowances and nonwage issues.
"We want a large improvement in housing allowances. We also want all vacant posts in the public sector to be filled," Samwu spokesman Tahir Sema said yesterday.
"Allowances are more important than ever. Wages cannot be disregarded, though, and we want a 15% overall increase and the average minimum wage to move from R4300 a month to R6000 a month," he said.
Talks between Samwu and employers at the South African Local Government Bargaining Council begin on May 21, Mr Sema said.
Labour analyst Tony Healy said allowances may be important but they normally leave the table while wages remain, before strikes happen.
He expected wages to remain the key issue --- one that may lead to another costly strike for South Africa. The public sector experienced protracted strikes in 2007 and 2010, which cost the economy billions of rand.
Even though the past few weeks have seen steady progress, with the wage offer and demand moving closer together, Mr Healy said public sector workers had developed a tendency to strike nevertheless --- as a bargaining strategy.
"Whenever you deal with a public sector union, a strike is possible. It seems to be for historical reasons. Private sector unions used to strike often, and they won benefits. Now, public unions are trying," he said.
Unions often argue that pay hikes should at least beat inflation. Consumer price inflation looks at how the prices of an index of goods rise.
Even if economists expect consumer prices to fall back below 6% later this year, Mr Healy says the inflation that Stats SA thinks unionised workers face is higher than 6%.
Finance Minister Pravin Gordhan, earlier this year asked for a 5% cap on public sector salaries.
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