Africa-Press – South-Africa. The government’s final 7.5% wage increase offer for the nation’s public servants remains on the table as the Commission for Conciliation, Mediation and Arbitration (CCMA) has been roped in as a last resort to end the impasse.
On Tuesday, acting Public Service and Administration Minister Thulas Nxesi briefed Parliament about the government’s plan to professionalise the public service.
Nxesi also gave an update on the salary negotiations with public servants.
“I would like to report that all parties to the Public Service Coordinating Bargaining Council (PSCBC) have been advised of the need to engage and settle the matter of wages. The final offer of an average of 7.5% by the government remains available and has not been withdrawn as it has been purported in the media,” Nxesi told journalists.
Currently, the government is offering a 3% pensionable increase across the board, the continuation of the current non-pensionable cash allowance of R1 000 at all salary levels, and a 1.5% pay progression payable to all qualifying employees.
According to Nxesi, the government’s offer amounted to a 7.5% increase when the 1.5% pay progression and cash gratuity were taken into account.
On Monday, News24 reported that the Public Servants’ Association (PSA) officially served notice of a strike to the government.
The PSA’s formal notice followed what it termed “exhausting all options possible to resolve the wage negotiation impasse”.
It came after Nxesi indicated that he would invoke section 5(5) of the Public Service Act to unilaterally advance a 3% wage increase.
Section 5 of the Public Service Act allows the government to enforce salary increases unilaterally as long as it does not reduce wages and benefits.
Indications also point to Finance Minister Enoch Godongwana tabling a Medium-term Budget Policy Statement on Wednesday that accommodates a 3% increase in public wages.
In a letter, dated 17 October, Godongwana wrote to Nxesi to query the wage talks.
“I wish to inform you that it is my view that government should allocate the additional funding towards the implementation of the proposed pensionable salary increases for 2022/23, as well as the carry-through costs over the 2023 MTEF. This is because there will not be another opportunity to implement funding for wage increases in the current year once the MTBPS (Medium Term Budget Policy Statement) is tabled.
“It should be noted that my decision does not seek to undermine the current wage negotiations process, which I have noted is still ongoing. However, the credibility of the budget is impugned by a failure to at least take into account the current offer from the facilitation process, which has financial implications. Nevertheless, urgent action from all parties to finalise this matter will significantly reduce uncertainty, including both for the fiscal outlook and public service in general,” Godongwana’s letter read.
The South African Democratic Teachers’ Union (Sadtu) is the only union that has resolved to accept the government’s wage offer.
According to Nxesi, the current round of negotiations commenced with a pre-negotiations session at the PSCBC, where the timetable for negotiations was adopted.
This was in an attempt to fast track the 2022/23 round of negotiations to conclude earlier, and to commence immediately with the 2023/24 negotiations, so as to align the negotiations with the planning cycle of the government.
“This is important to ensure that any risk to the integrity of the fiscus is managed and agreements are incorporated into the public finance budgeting framework. It is, therefore, clear that to ensure that public servants are not disadvantaged and to safeguard the fiscal health of the country, the draft agreement has to be implemented before the tabling of the 2022 Medium Term Budget Policy Statement tomorrow (Wednesday) by the minister of finance,” he said.
Furthermore, he said that, as a last resort, the Department of Public Service and Administration had requested facilitation by the CCMA in order to break the deadlock and safeguard the collective bargaining process.
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