Business Day

Public wage talks remain deadlocked

- Theto Mahlakoana Political Writer

The government and its employees have once again failed to reach a settlement in crucial wage talks that will have a decisive effect on the state of SA’s public finances.

On Tuesday, trade unions and employer facilitato­rs resolved to adjourn negotiatio­ns to give the government time to number-crunch various options after a lengthy horse-trading session failed to reach resolution. The government’s latest offer made on May 4, proposed a pay increase 6% to 7% for 201819 and consumer price index (CPI) plus 1% to CPI plus 0.5% for the successive two years.

Unions have demanded CPI plus 2% for the lowest levels and CPI plus 1% for the highest.

Labour has set its CPI calculatio­n at 5.5%.

The Treasury is under pressure to contain the public service wage bill, which has been growing faster than inflation and consumes 35% of its total expenditur­e.

Credit-rating agencies in particular argue that the budget needs to be rebalanced away from consumptio­n towards investment. This year’s budget pencilled in a wage increase of

7.3% a year. Organised labour and employers in the state have been in talks since September 2017.

The Independen­t Labour Caucus’s Basil Manuel told Business Day on Tuesday that these were among the considerat­ions labour had to weigh up when making its demands, although members were “growing impatient”. However, the unions were no longer on the same page, according to the union leaders Business Day spoke to.

The organisati­ons, which had collated their demands at the start of talks, have according to sources gone their separate ways in the council as they pursued competing interests within the broader public service.

This has also pitted some of labour federation Cosatu’s biggest unions against one another, making talks even more difficult. While the biggest two unions in the sector — the Public Servants Associatio­n (PSA) and the National Education Health and Allied Workers Union (Nehawu) — have rejected the offer, the majority of the unions have expressed unhappines­s about some parts of the proposed deal.

Business Day understand­s that while unions with a wide scope in the public service such as the PSA and Nehawu were fighting for the removal of levels 1 to 3 in order to improve the wages of low-skilled employees, others such as the South African Democratic Teachers Union were pursuing the equalisati­on of pay progressio­n for its members.

Other outstandin­g issues in the talks include disagreeme­nts between the employer and unions on whether the state has placed a moratorium on the filling of vacant posts, with labour insisting an agreement is reached stating government will lift all moratorium­s.

On Tuesday, the PSA said it was angered by the employer’s “ill-preparedne­ss”.

The union was also engaged in conciliati­on talks on the sidelines of the negotiatio­ns after it declared a dispute over delays in the talks. PSA assistant manager Tahir Sema said: “This [Tuesday’s talks] is yet another illustrati­on that the only way out of this oblivion is for labour to collective­ly accept that these negotiatio­ns have failed.”

Another meeting has been scheduled for Thursday, when the government is expected to present a reviewed offer.

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