Unions? wage push hit by disunity
News24
Threats of a massive public sector strike next month are being undermined by disunity in the public sector trade unions. The Public Servants Association of SA (PSA), trade unions affiliated to Cosatu and the Federation of Unions of SA (Fusa) declared a deadlock last week.
This was after government negotiators doubled down on National Treasury s stance that there was no money to foot the bill for the proposed salary increases linked to inflation plus 4%.
Instead, government s revised offer came in the form of a proposal that the funds currently allocated for pay progression, resettlement costs for workers from one province to the other and daily allowances no longer be paid out.
Talks between the government and trade unions over salary increases for South Africa’s public servants in 2021 have collapsed, with both parties failing to agree on a matter that has become a political hot potato.
South Africa has been here before and the contentious matter has become a merry-go-round, with trade unions representing public servants tabling inflation-beating salary increases every year that the government decries as being unaffordable.
This year is no different. The government and trade unions last met on Friday, 23 April at the Public Service Co-ordinating Bargaining Council (PSCBC), where both parties negotiate terms of employment.
At the PSCBC meeting, trade unions repeated their demand for a salary increase of consumer price inflation plus 4% effectively 8.3% considering that the SA Reserve Bank expects consumer price inflation in 2021 to average 4.3%. This increase would be for all public servants, regardless of their salary and seniority levels.
Workers Revolutionary Party
Public service workers demonstrate over pay and housing
SALARY negotiations between South Africaâs government and public servants for 2021 have gone awry. Trade unions representing public servants have tabled a wage increase proposal of over 7%.
Meanwhile, the government is doubling down on a three-year pay freeze. After bending over backwards for public servants in awarding them inflation-busting pay increases for over a decade â which accelerated the deterioration of the fiscus â the government has now drawn a line in the sand.
For the second year in a row, the government is adamant on a salary freeze for South Africaâs 1.3 million public servants during the 2021/22 financial year, putting it on a nasty collision course with the countryâs trade union movement.
âFragile economy canât afford more strikesâ - analysts
By Siphelele Dludla
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THE LOOMING strike season over the impasse in the public sector wage negotiations could have the potential to derail South Africaâs expected economic recovery this year.
This week, analysts warned that strikes could override the gains made since the easing of lockdown restrictions and the vaccination rollout.
NFB Private Wealth Management managing director Andrew Duvenage said the strike season, with wage negotiations in full swing, could be the biggest risk to investor confidence and into this year s fragile economic recovery. The year was bringing other complexities that could be far worse than previous years.
The association which represents labour federations is now in the process of declaring a dispute after numerous attempts to find each other, with the employer, failed.