Public servants inch closer to getting pay rises they demanded
The National Education, Health and Allied Workers’ Union (Nehawu) has ended the strike by public healthcare workers after reaching an in-principle settlement with the government over their pay for 2022. In a separate development, the government has increased its pay rise offer from 4.7% to 7% for 2023/24, according to trade unions.
The government has done this to break an impasse that has persisted for months and led to an indefinite strike that has disrupted crucial services at state facilities in recent days.
It kick-started pay rise negotiations in February by offering South Africa’s 1.2 million public servants an average increase of 4.7% for its 2023/24 fiscal year, followed by adjustments in 2024/25 and 2025/26 that are linked to the expected consumer inflation rate.
But trade unions representing public servants overwhelmingly rejected this offer and even snubbed an invitation to return to the negotiating table.
Public sector trade unions have, instead, demanded a pay rise of 10% for 2023. They also embarked on a week-long strike that affected services in some of South Africa’s big hospitals, an attempt to force the government’s hand in acceding to their demands, which include a monthly housing allowance of R2,500.
The strike, mainly by healthcare workers belonging to Nehawu, ended after the Labour Appeal Court ordered them to report for duty.
Nehawu and other trade unions are disgruntled at the government’s decision to unilaterally implement a below-consumer inflation pay increase of 3% in 2022, when they demanded a pay rise of 10%, saying their public servant members were battling to survive the rapidly rising cost of living.
They also argued that the government cannot start negotiations for its 2023/24 fiscal year when their 2022 demand for a 10% pay rise is still outstanding.
But on Tuesday, the government and Nehawu announced that they had reached an in-principle settlement to end the strike by healthcare workers.
This means some 274,000 workers affiliated to Nehawu will be required to report to work. The settlement also ensures that workers who participated in the week-long strike will not face any disciplinary action.
Nehawu said the government had agreed “to augment the [pay] increment” for the 2022/23 fiscal year, implying that public servants may be awarded more money that is backdated to last year. This might cover the difference or shortfall between the 3% increase that the government implemented and the 10% that Nehawu and other unions demanded.
“The employer has agreed that residual and substantive matters emanating from the 2022/23 wage dispute related to the cost-ofliving allowance shall be tabled and positively dealt with and concluded as part of 2023/24 wage negotiations,” Nehawu said.
Public servants belonging to other unions may also be in line to automatically benefit from this settlement.
The Department of Public Service and Administration, which is responsible for employment conditions in the state, said in a statement that the settlement with Nehawu paved the way for pay rise negotiations for the government’s 2023/24 fiscal year to be concluded.
These negotiations are under way at the Public Service Coordinating Bargaining Council (PSCBC), which is where the government and trade unions negotiate the conditions of employment in the public sector.
But some trade unions, including Nehawu, boycotted the PSCBC negotiations. They were steadfast in wanting the government to implement their 2022 pay rise demand of 10%. The settlement concluded on Tuesday between the government, Nehawu and other unions will see them return to the PSCBC discussions.
A special council meeting has been scheduled for the next few days at the PSCBC at which the unions will be introduced to the current pay rise negotiations. The meeting will also allow the disgruntled unions to discuss their concerns about “outstanding” pay rise demands from 2022.
In other words, the government and trade unions will lump together the pay rise demands of 2022 and 2023 at the PSCBC.
In a coalition, the unions that are part of the PSCBC negotiations represent about 53.9% of unions recognised by the council, thus constituting a majority.
On top of the 7% pay rise offer, public servants would receive an after-tax cash gratuity (or bonus) of R1,000 a month, an incentive scheme that would run for a year from 1 April 2023.
Then the government plans to increase the pay of public servants by the expected inflation rate plus 0.5% in 2024/25 and only the inflation rate in 2025/26.
The government has neither confirmed that it has sweetened its offer nor revealed the shape or form of its pay rise offer.