Cosatu welcomes pay hike for public servants

The Congress of South African Trade Unions (Cosatu) on Wednesday welcomed the announcement of a pay increase for public servants.

On Tuesday, Minister of Public Service and Administration Geraldine Fraser-Moleketi said public-sector workers would receive a wage increase of 10,5% with effect from July 1.

“Cosatu welcomes Fraser-Moleketi’s proposal for a 10,5% pay increase for public-service workers,” Cosatu spokesperson Patrick Craven said in a statement.

Cosatu added that the matter now had to be referred to the Public Service Bargaining Council for its consideration.

The prevailing wage agreement provided for increases effective from July 1 based on projected CPIX (consumer inflation less mortgage costs) for the period April 1 2008 to March 31 2009, plus an additional 1% real increase, Fraser-Moleketi told MPs in the National Assembly during debate on her budget vote.

Finance Minister Trevor Manuel had given an indication with respect to CPIX when he stated last week inflation was expected to average above 9% in 2008.

“We need to be mindful that we cannot be mechanistic in this calculation with respect to public servants, but as public spirited people, we need to agree that the overall sustainability of the economy in general is an important consideration,” Fraser-Moleketi said.

“We also need to recognise that what we are seeing is not necessarily a normal inflation cycle.”—Sapa