Critical time for public sector wage talks

Finance Minister Nhlanhla Nene is a central figure in the log-jammed pay talks with several unions which resume on Monday. Photo: Elmond Jiyane, Department of Communications

Finance Minister Nhlanhla Nene is a central figure in the log-jammed pay talks with several unions which resume on Monday. Photo: Elmond Jiyane, Department of Communications

Published Mar 8, 2015

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Johannesburg - The government and unions will meet on Monday in a bid to break the logjam in public sector wage talks, in what has been described by participants as a “do or die” bid to find a deal before the end of this month.

Finance Minister Nhlanhla Nene and Public Service and Administration Minister Collins Chabane are due to meet with Cosatu President Sdumo Dlamini and leader of negotiations for the Cosatu bloc at the council, South African Democratic Teachers’ Union (SADTU) general secretary, Mugwena Maluleke.

The meeting is meant to try and rescue the talks from the brink of collapse after public sector unions affiliated to Cosatu threatened to act “decisively” in light of government’s adjustment of its initial offer of 5.8 percent down to 4.8 percent in line with the new projected CPI figures.

Sadtu, National Education, Health and Allied Workers’ Union (Nehawu), Police and Prisons union (Popcru), nursing union Denosa, the SA Medical Association (Sama), State and Allied Workers’ Union (Sasawu) and Public and Allied Workers’ Union (Pawusa) have accused Government of negotiating in bad faith.

DPSA spokesperson Brent Simons has disputed the allegation, saying government had not revised any of its conditions tabled at the council.

“Unions are 100% aware that Government’s offer is directly related to the CPI and an additional agreed percentage point/s,” he added.

Labour unions in the council, including the Independent Labour Caucus, have despite the lowering of government’s offer decreased their own wage demand to 10 percent, moving 5 points down.

However, Independent Media understands the ministers will attempt to convince the unions to drop the figure even further in line with a Cabinet-approved wage hike proposal.

Sources from both sides, who did not want to be identified, said parties would probably end up agreeing on 7 or 7.5 percent increases.

Last month, minister Nene said government had budgeted a cost-of-living salary increase of 6.6 percent for its employees.

Labour unions hard-pressed to put up a fight until a favourable offer is made, have to jump through hoops for their members. Workers in all sectors have had to grapple with an increased cost of living and this is likely to motivate a push for what labour considers an acceptable offer.

Other demands made by workers have not been as contentious as the wage increase.

Medical Aid Subsidy adjustments were discussed and an understanding was reached allowing a 17.6 percent increase of contributions. An in-principle agreement was also arrived at on the payment of 13th cheques or service bonuses.

Another irritant to labour has been the large number of outstanding agreements which government has failed to implement through-out the years, some of which date back to 2007.

Outside of the bread and butter issues are murmurs about the possibility of a politically driven wide-scale strike should government not meet unions halfway.

It is understood that the Cosatu Joint Mandating Committee (JMC) resolved in a meeting with its negotiators to give government a March 15 deadline, failing which a dispute would be declared. This usually ends with a strike.

The last time public servants downed tools was in 2010 and workers went back to work after settling for an average wage increase of 7.5 percent and an increase in housing allowance. The strike was characterised by violence and lasted 20 days.

There’s high contestation for members in the public service between old and new unions.

A number of splinter organisations have arisen as a result of the challenges currently troubling Cosatu. In light of these, it would be crucial for the federation to retain its current members by showing dividends in the form of a high wage increase.

Deputy General Secretary Bheki Ntshalintshali said: “The unity of Cosatu will always be forged in the streets through campaigns focusing on issues affecting workers and the working class in general.”

A Cosatu union negotiator, who asked not to be named, warned that there was little likelihood that the negotiations could be concluded amicably.

“The problem is that Cosatu is really paralysed. New unions and the Independent Labour Caucus are going to take over. And another reason is that for Cosatu to redeem itself, it must go on strike to demonstrate to workers that it does not sleep in the same bed as government and is still relevant.”

Meanwhile, government insiders also involved in the negotiations said they saw very little prospects of an agreement being reached soon.

The Public Service Association’s (PSA) Leon Gilbert cautioned against prolonged talks as it is always the better alternative to conclude before the implementation date. Workers expect increases from April 1, failing which they would have to be back-paid.

Sunday Independent

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