BusinessDay.gif

 

 

COSATU firm on public sector pay rise

 

 

Karl Gernetzky, Business Day, Johannesburg, 2 March 2015

 

Public sector trade unions have reiterated their rejection of the 6.6%
increase in public sector pay which Finance Minister Nhlanhla Nene has
budgeted for.

 

Congress of South African Trade Unions (COSATU) chief negotiator Mugwena
Maluleke warned on Friday that lack of progress in the public sector wage
talks could result in a strike.

 

The wage agreement between about 1.3-million national and provincial
government employees expires on April 1. There had been hopes that a deal
would be struck before the finance minister tabled the national budget last
week.

 

The negotiating parties remain poles apart with the unions demanding a 15%
wage hike while the government has offered an inflation-linked increase.
Credit rating agencies and economists cite the wage talks as one of the
biggest risks to the fiscal consolidation strategy which the minister has
set out. The strategy includes a hiring freeze and a slowdown in public
sector pay.

 

Last week's budget documents showed that unit labour costs in the public
sector had risen more than 80% in real terms over the past 10 years. Also,
most public servants were in the top 30% of earners nationally.

 

The 16 unions in the negotiations, half of which are COSATU affiliates, have
not formally revised their wage demand, but Mr Maluleke said on Friday that
this was due to a lack of a suitable offer from the government. But the
government has repeatedly said it has budgeted 6.6% for a cost-of-living
increase for public sector workers.

 

Mr Nene told journalists last week that he hoped that lower than expected
inflation would help the government and unions reach an affordable wage
settlement.

 

Mr Maluleke said unions were ready to proceed with the bargaining, but no
meetings were scheduled this week.

 

The unions opened their demands with a 15% increase in a one-year deal. They
had also demanded that the housing allowance, which has not increased for
the past three years, be raised from R900 to R3,000 a month.

 

 

From:
http://www.bdlive.co.za/national/labour/2015/03/02/COSATU-firm-on-public-sec
tor-pay-rise

 

 

 

 

 

 

 

 

 

 

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