Unions vow to fight any state move to renege on wage deal

A crisis appears likely between the government and its employees with unions signalling that they will fight any state move to renege on its pay agreement and freeze wages in the coming year.

At the first meeting of the Public Service Co-ordinating Bargaining Council (PSCBC) since the February budget detailed plans to cut the wage bill by R160bn over three years, the largest public-sector union, the National Education, Health and Allied Workers Union (Nehawu), said that it would strike if the cuts went ahead.

Nehawu said on Wednesday that it would embark on a national day of action on March 30, as a “warning shot” to the government to honour the last part of the three-year wage agreement signed by the PSCBC in 2018, due for implementation on April 1.

This is despite the government imposing a ban on meetings of more than 100 people to reduce the risk posed by Covid-19, which has been confirmed in 116 people in SA. The DA said a strike could endanger the lives of thousands of workers and the public at large.

According to unions, the government dropped its offer to 0% for 2020/2021 from the 1.5% nominal increase it said it would make.

Zola Saphetha, general secretary of Nehawu, told Business Day: “The employer said they are not going to give an increase. It is a wage freeze. Workers will remain with exactly what they got last year and nothing will be added.

“We said to them that ... we are rejecting the offer [and asked] What is your intention on April 1’.‘ They have not answered this question.”

Public-sector unions will meet on Thursday, and after that a decision will be made on whether another meeting of the bargaining chamber will take place before April 1.

According to the existing agreement, on April 1, pay should rise at the consumer price index (CPI) rate plus 1% for the first eight grades of the bargaining unit, and at CPI plus 0.5% for the higher grades.

In addition, all employees should get notch increases equal to about 1% of pay. This would cut R37.8bn from the wage bill in 2020/2021, Treasury officials said in February.

Should the cuts not be achieved for 2020/2021, the fiscal deficit, which would rise to 6.8%, will widen by an additional percentage point, according to the Treasury.

Moody’s Investors Service, which could make a rating decision on SA at the end of March, has expressed doubt that the government will meet these targets.

However, Nehawu said it would not allow workers’ democratic gains to be undermined. It stressed that pay agreements reached by parties in the bargaining council remained sacrosanct.

“Anyone who undermines workers gains must also be prepared to face the wrath of our members,” Nehawu said.

DA public service & administration shadow minister and MP Leon Schreiber said the party would write to public service & administration minister Senzo

NEHAWU SAYS IT WILL EMBARK ON A NATIONAL DAY OF ACTION ON MARCH 30, AS A WARNING SHOT TO THE GOVERNMENT

6.8% fiscal deficit should the wage cuts not be achieved for 2020/2021

Mchunu to instruct Nehawu to cancel the planned march.

“If the government fails to avert this potential disaster, the DA will obtain an urgent interdict against Nehawu’s actions to protect the health and safety of thousands of public servants and other South Africans from exposure to the coronavirus,” Schreiber said.

“Nehawu is threatening to endanger the lives of not only its workers and members, who will be forced to participate in the protest, but also the lives of the broader SA public.”

Schreiber said that Nehawu appeared hell-bent on defending the salaries of the “29,000 millionaire managers in the public service and the resultant bloated public wage bill, even at the potential cost of fanning the flames of the coronavirus”.

Union federation Cosatu general secretary Bheki Ntshalintshali has said that it will support the planned march. Ntshalintshali said on Monday: “Whatever action Nehawu takes, we will support them.”

On Wednesday, Mchunu’s spokesperson, Vukani Mbhele, told Business Day: “Our engagements with unions are ongoing.

“We will [issue] a statement at an appropriate time.”

1.5% the wage increase that government had agreed to, according to unions