Labour unions representing South Africa’s 1.3 million state workers demanded 10% pay increases to help them offset soaring electricity, transport and food costs.
The unions are also pushing for a single-year pay deal because they no longer trust the government to honour longer-term accords, according to a presentation they made to the public sector bargaining council on Wednesday That comes after the government reneged on increases agreed to in 2020, the final year of a three-year deal, on the grounds that it was unaffordable.
The remuneration of civil servants accounts for almost a third of total government expenditure and bowing to demands for inflation-beating increases would derail the National Treasury’s plans to rein in the budget deficit and bring runaway state debt under control. Credit-rating companies have repeatedly cited South Africa’s high wage bill as a major risk to state finances. The annual consumer inflation rate is currently 5.9%.
When the government backtracked on the 2018 accord, it argued that the Department of Public Service and Administration didn’t have a mandate from the Treasury to sign off on the terms – a view upheld by the nation’s top court. The unions now want written confirmation from the Treasury that it has delegated the necessary negotiating authority to the department.Allowances of 12% of workers’ basic salary when disasters such as the coronavirus pandemic strike.
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