Government wants to renege on three year public sector wage deal - unions

HUNDREDS of people gather outside Parliament during a Cosatu-led march to demand safe and efficient services in the public transport sector. Armand Hough African News Agency (ANA)

HUNDREDS of people gather outside Parliament during a Cosatu-led march to demand safe and efficient services in the public transport sector. Armand Hough African News Agency (ANA)

Published Feb 26, 2020

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JOHANNESBURG - The South African

government wants to renege on a three-year public sector wage

deal struck in 2018, and not pay public servants the agreed

increased pay for the final year starting April 2020, trade

unions said.

Public sector union NEHAWU said in a statement on Wednesday

the move was "a declaration of war" and threatened to shut down

government indefinitely, if Finance Minister Tito Mboweni

announces a freeze on public sector wages during a budget speech

later on Wednesday.

NEHAWU is one of the largest members of the COSATU trade

union federation that is in an alliance with the governing

African National Congress party.

COSATU said in a separate statement that reviewing the terms

of the 2018 deal was an "irresponsible and blatant act of

provocation".

But economists and ratings agencies are likely to view the

government's attempts to take a harder line with unions

favourably.

Public sector wages have been rising quickly at a time of

severe fiscal constraints and now account for around a third of

consolidated government expenditure.

The finance ministry, which is in a budget lockup, was not

available for comment.

Reuters

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