Johannesburg - The government has tabled a new wage offer of 5.8% for public servants, moving from the 5% proposed on Monday.
The new figure was presented following a Cabinet mandating committee meeting on Wednesday, led by acting minister in the Department of Public Service and Administration, Nathi Mthethwa.
Labour unions have rejected the improved offer, maintaining their original stance, that workers deserved a 10% wage increase.
The unions believe the current cost of living, with Eskom’s request to hike electricity fees by 25% meant workers would only make do with a double-digit increase.
Negotiations went on until the early hours of Thursday morning at the Public Service Co-ordinating Bargaining Council in Centurion.
Unions also reminded the government of a pre-talks agreement, where it was decided all parties would start negotiations at a 5.8% base.
This meant that in the eyes of the unions, the employer has only just begun the bargaining process and they expected a substantial move from the current offer.
The government has also made serious strides on the problematic housing allowance demand.
Workers, through their unions wanted a R3 000 increase of the allowance, but the employer offered them R1 500, which would be received only by workers who owned homes.
Unions berated this offer, warning such a deal would divide workers. The state has now revised this proposal to R1100 for all workers, which is likely to sit well with unions. The allowance would increase from the current R900 paid to public servants.
Meanwhile, workers belonging to Cosatu-affiliated public sector unions have been picketing outside the chamber where their fate is in discussion.
Cosatu insiders told Independent Media that this was orchestrated by the unions which wanted to exert pressure on the employer from all avenues.
Parties to the talks will continue engagements again on Thursday, hoping to finalise a new collective agreement by the end of the week.
IOL