Cape Town – The government is heading for a collision course with public sector unions after Finance Minister Enoch Godongwana on Wednesday announced that their 7.5% offer for the wage increases would be implemented.
“The offer will be implemented through the payroll system, and back-dated to April 2022,” Godongwana said.
He made the statement when he was delivering the 2022 medium-term budget policy statement (MTBPS) in Parliament.
Godongwana said wage negotiations had been taking place at the Public Service Co-ordinating Bargaining Council and the government made a final offer which emanated from a facilitation.
The minister said the offer entailed the continuation of a non-pensionable R1 000 cash allowance until March 2023 and a pensionable 3% salary increase.
“Madam Speaker, the offer on the table is in the best interest of the fiscus and public service workers. Implementing it does not undermine the collective bargaining process,” he said.
“We believe that the facilitation process has helped all parties to get to this point. Therefore, the spending estimates we are tabling today include this amount,” he said.
The MTBPS document said National Treasury has allocated R43.6 billion in compensation of employees over the 2023 medium term expenditure framework.
“In 2023-24, additional allocations amount to R11.7 billion. This amount excludes wage increases in the 2023-24 as the next wage negotiation process has not begun,” reads the document.
Asked if the unilateral implementation of the government offer would not lead to lead to a strike, Godongwana said no employer whether government or anybody wanted a strike.
“An employer does anything to prevent a strike. We have done all we could,” he said.
Godongwana also said the Department of Public Service and Administration would invoke section 5 of the Public Service Act.
His announcement came as no surprise as Acting Public Service and Administration Minister Thulas Nxesi on Tuesday hinted at the unilateral implementation of the offer that was rejected by a majority of unions.
Nxesi had indicated that he had given the go-ahead to Godongwana to include the wage offer in the budget on Wednesday.
“This will secure the money on offer. If we do not do that, the funds might go elsewhere. Do you want us to do that? This is in the interest of the public service,” he said.
Nxesi also said they would continue with the dispute at the Council for Conciliation, Mediation and Arbitration on October 31 and November 1 where all parties would be trying to mediate the dispute.
Sadtu, Naptosa and SAOU have accepted the government offer, while the rest of other public service unions, including others aligned to Cosatu, rejected the offer.
Nxesi had said his department had requested facilitation by the CCMA in order to break the deadlock and safeguard the collective bargaining process.
“The PSCBC general secretary and CCMA director have confirmed interest in facilitating this request by the government and we will work with them.
“Any announcement of industrial action remains premature,” he said, adding that they remained committed to respecting organised labour, safeguarding bargaining processes and promoting peace.
When director-general Yoliswa Makhasi said she was waiting for the instruction to press the button, Nxesi was overheard saying: “You will have it today.”
Cape Times