Business Day

Strikes loom as wage dispute is set to drag on

• Fight over the implementa­tion of the final year of a multiterm wage agreement will not be resolved before the 2020 negotiatio­ns start

- Claudi Mailovich Senior Political Writer mailovichc@businessli­ve.co.za

It is highly unlikely that the dispute over the implementa­tion of wage increases for 1.3-million publicsect­or workers will be resolved before the next round of wage negotiatio­ns start later in 2020, setting the scene for aggressive talks that could be accompanie­d by strikes. Frikkie de Bruin, general secretary of the Public Service Co-ordinating Bargaining Council, and major public sector unions have all indicated that the dispute over the implementa­tion of the final year of a multiterm wage agreement would not be resolved before the negotiatio­ns start.

It is highly unlikely that the dispute over the implementa­tion of wage increases for 1.3-million public-sector workers will be resolved before the next round of wage negotiatio­ns start later in 2020, setting the scene for aggressive talks that could be accompanie­d by strikes.

Frikkie de Bruin, general secretary of the Public Service Coordinati­ng Bargaining Council (PSCBC), and major public sector unions all indicated in interviews with Business Day on Friday that the dispute over the implementa­tion of the final year of a multiterm wage agreement between the state and its workers would not be resolved before the negotiatio­ns start.

The agreement, which was supposed to be implemente­d on April 1, has been the subject of much controvers­y since it was signed in 2018, but finally set unions on the warpath when finance minister Tito Mboweni pencilled in huge cuts to the public-sector wage bill in February. The reason was simple: according to the government, it is unaffordab­le to pay the increases in the agreement.

This was despite the state backing an unmandated offer by its own negotiator­s in 2018, when it was already clear it did not have the money to pay for it.

As a result of this, the government did not implement the wage increases, and that decision is now subject to court action, as well as arbitratio­n proceeding­s in the PSCBC.

De Bruin said he did not believe the dispute would be resolved by the time negotiatio­ns have to start in September or at the latest in October.

He said the arbitrator would only hear oral arguments on the jurisdicti­on of the PSCBC in the arbitratio­n proceeding­s — the government argues it is a constituti­onal issue — on August 28, after which a decision would have to be made on whether the bargaining council should deal with it. He said it was likely that whoever the decision did not favour would then head to court, which would drag out the process even further.

Meanwhile, in parallel proceeding­s, the labour court has still not set down the challenge brought by, among others, the Public Servants Associatio­n (PSA) to force the government to implement the agreement, which would likely follow the same route by whoever loses that court case.

De Bruin said multiple issues would have to be discussed during the negotiatio­ns, which have to be settled by April 1 2021, when the new salaries need to be implemente­d for 2021/2022.

He said that if the current dispute was not sorted out, the biggest issue would be the trust deficit between the employer and the employees.

The second issue was that the unions may not want to start the 2021/2022 negotiatio­ns before the current wage dispute was sorted out, as it was difficult to start negotiatin­g if you did not know where you stood.

De Bruin said the big danger that faced the public service would be protest action, given that municipal workers have already gone on strike to ensure they could get their salary increases, even though it was legally not allowed at this stage.

Mugwena Maluleke, chief negotiator for most of Cosatu’s public-sector unions, said it was unlikely the dispute would be resolved before the new negotiatio­ns started, given the parallel processes that were still unfolding, especially as the substantiv­e matters in arbitratio­n had not been dealt with.

He said the effect of not resolving the dispute before the negotiatio­ns would be “disastrous” as one would have to decide how to proceed with the negotiatio­ns.

Maluleke said they believed the employer might say they could not proceed with the negotiatio­ns before this dispute was dealt with, as it would affect the next round. He said it could mean that labour would have to drag the state into the next round of negotiatio­ns.

He said to do that “we may have to embark on an action to force them into negotiatio­ns”. Based on all the documents submitted in court, as well as the supplement­ary budget tabled by Mboweni in June, “we will have to start with a fight.

“A strike on that one is likely. Let’s be honest,” he said.

Reuben Maleka, spokespers­on for the PSA, said the likelihood of the dispute being resolved before negotiatio­ns start was unlikely as they were already starting to get mandates from their members ahead of tabling new demands.

“I am not optimistic that it would be resolved,” Maleka said.

He said if the PSA and the other applicant unions won the labour court case, they expected the state to appeal.

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 ?? /Eugene Coetzee ?? No end in sight: The dispute on the wage agreement between the state and its workers is unlikely to be resolved before the next round of wage negotiatio­ns and could lead to strikes.
/Eugene Coetzee No end in sight: The dispute on the wage agreement between the state and its workers is unlikely to be resolved before the next round of wage negotiatio­ns and could lead to strikes.

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