/ 19 September 2004

Council to consider pay-rise impasse

The Public Service Coordinating Bargaining Council will meet on Sunday to consider a draft agreement drawn up on Friday evening in an attempt to resolve the public-service pay-rise impasse.

The working group was set up by the government and labour unions on Friday morning to explore ”all possible options” for a resolution, government negotiator Kenny Govender said on Saturday.

Govender said the draft agreement includes the idea of second- and third-year increases of CPIX plus half a percent, which would be funded by the delay of a medical-aid plan to be implemented in 2006 instead of 2005.

Another difference set out in the draft is the implementation of a housing plan over five years rather than four years, he said.

Hundreds of thousands of public servants went on strike nationwide on Thursday in protest against the government’s pay-rise offer.

They were demanding a 7% across-the-board increase, instead of the government’s maximum 6%, and better medical aid and housing benefits.

They are also unhappy with the employer’s proposed inflation-linked pay-rise offer for the next two years.

Unions have threatened to extend the strike to Monday and Tuesday if their concerns are not addressed.

After Thursday’s strike, a government spokesperson said the employer had not changed its position, but remained committed to resolving the impasse. — Sapa