/ 22 April 2004

Union threatens to sue to reclaim R300m

The Solidarity trade union is planning to proceed with a class action lawsuit against the state in an effort to reclaim about R300-million illegally deducted from public servants’ salaries, a union spokesperson said on Thursday.

Said Dirk Hermann: ”We are keenly aware of the far-reaching implications class action could have on the Public Service Bargaining Council. We see a settlement as the first prize instead of further litigation.

”Our concerns are good governance in the public service and fairness towards our members. However, if you cannot reach a settlement we will proceed with the class action.”

The announcement follows a ruling by the Labour Court that the state’s agency agreement, which allows government to deduct one percent of public servants’ salaries for use by recognised trade unions, does not comply with the Labour Relations Act.

Hermann said the implication of the verdict was that the government had illegally deducted about R300-million from the wages of about 100 000 civil servants.

”We are gratified by the court’s decision. Employers have to recognise the crucial importance of abiding by the terms of the Labour Relations Act,” he said.

”This is not just a victory for the fair treatment of public servants but a victory for the constitutional state. The judgement once again confirms that the government is not above the law,” Hermann said.

”We consider it unfortunate that we had to take this matter to court. We did try to resolve it in an amicable way but were unsuccessful,” said Hermann, adding that the union believed that a settlement was still possible. – Sapa