Cape Town - The Public Service and Administration Department is set to unilaterally implement the 7.5% salary increase for public servants when Finance Minister Enoch Godongwana allocates R42 billion for the salary bill in his medium term Budget policy statement (MTBPS) on Wednesday.
This emerged on Tuesday when Acting Minister for Public Service and Administration Thulas Nxesi addressed the media on the public service wage negotiations.
Nxesi said the government was being accused of unilaterally imposing a wage settlement after no agreement was reached at the Public Service Co-ordinating Bargaining Council (PSCBC).
“It is more complicated than that. It is not a unilateral action,” he said.
Nxesi said the planned move was drawing from what Godongwana would table in his MTBPS on Wednesday.
“He asked whether he should include the government offer. I suggested yes. “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 said government 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.
“We will implement and wait for a dispute resolution. Nobody is imposing.”
However, Nxesi indicated that not all unions were in dispute over the offer by the government.
“We must safeguard that money.” Sadtu, Naptosa and SAOU (South Africa Teachers' Union) have accepted the government’s offer, while the remaining public service unions, including those aligned to Cosatu, rejected the offer.
On Monday, Cosatu’s joint mandating committee said the failure of the offer to enjoy majority support and signatures from parties after 21 days resulted in the employer withdrawing the offer from the table.
“With the offer having been withdrawn, we have now gone back to our initial demand of 10% across the board on the cost-of-living adjustment and invoked the PSCBC dispute resolution mechanism,” it said.
The labour federation also cited a “leaked letter” written to the general secretary of the PSCBC saying the employer was intending to unilaterally implement the very same offer that was officially withdrawn in council.
But Nxesi said they wrote formally to the bargaining council and attached a letter from Godongwana, who shared his view that the government should make an allocation for additional funding towards the salary increases for 2022-23 and carry-through cost for 2023-24.
“We said it must be brought to the attention of all the parties,” he said.
In his letter, Godongwana said there would not be another opportunity to implement funding for wage increases in the current financial year, once the MTBPS was tabled.
“It should be noted that my decision does not seek to undermine the current wage negotiation process, which I have noted is still ongoing.
“However, the credibility of the Budget is impugned by a failure to at least take into account the current offer from the facilitation process, which has financial implications.
“Nevertheless, urgent action from all parties to finalise this matter will significantly reduce uncertainty, including both for the fiscal outlook and public service in general,” Godongwana’s letter read.
Nxesi said an agreement had to be implemented before the tabling of the MTBPS by Godongwana on Wednesday.
He also 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. He added they remained committed to respecting organised labour, safeguarding bargaining processes and promoting peace.
Nxesi also said the government’s offer was guided by the cost of living which was around 7%.
“The reality is that we have offered an average of 4.5% in the form of cash allowance,”he said.
He, however, said workers had the right to strike, but they should know that they had responsibility.
“Some of them belong to essential services and have no right to strike.”
Yoliswa Makhasi, director-general of the Public Service and Administration Department, said she was waiting for the instruction to press the button.
“You will have it today,” Nxesi was overheard saying.
Makhasi said she would definitely put the money in the pockets of (public) servants.
“It may not be sufficient to solve their problems,” she said.
Makhasi also revealed that the National Treasury’s entire salary package entailed R25 billion to pay the R1000 monthly non-pensionable cash.
“Out of negotiations we asked for R14bn to finance the 3% wage offer. This is money immediately available but must be committed otherwise there are other competing interests hence we have taken a decision and implement,” she said before pointing out that there would be R42bn to pay employees in the public service.
Cape Times