CAPE TOWN – The Federation of Unions of South Africa (FEDUSA) is totally disappointed by the announcement made by Finance Minister Tito Mboweni during his Medium Term Budget Policy Statement (MTBPS) in Parliament, that he intended to reinvigorate the early retirement package unilaterally offered to public servants because of a very low uptake of only about 4 000 people.
At its core the plan allows public servants to leave the service before statutory retirement age without incurring any penalties as a strategy of drastically cutting the public sector wage bill.
Considering the wave of retrenchments that have been lodged this year albeit the commitments made during the 2018 Jobs Summit, Government itself is now fueling the fires of the grossly high unemployment statistics, by engaging in this mild form of retrenchment.
FEDUSA firmly believes any measures materially affecting the employment of public servants should be subjected to good faith negotiations at the Public Service Coordinating Bargaining between government as the employer and public sector trade unions.
FEDUSA cautiously welcomed the Minister’s plans to freeze the salaries of for Cabinet, Premiers and MECs at current levels, reducing compensation for Board and Executive Management, capping the cost of official cars at R800 000, inclusive of VAT and introducing a new cell phone dispensation that will also cap the amount claimable from the state; all domestic ministerial travel will be on economy class tickets.