/ 21 September 2004

Wages: D-Day looms for govt and unions

Wednesday will be D-Day for public-sector unions and the government to come to an agreement on salary increases as the two parties participate in a formal meeting at the Public Services Coordinating Bargaining Council (PSCBC).

Anton Louwrens of the Public Servants Association said unions are currently canvassing their members on the latest government offer and will make their position known on Wednesday at a formal meeting at the PSCBC.

“We hope that tomorrow all unions will agree to a settlement and that no single union will oppose it. We need at least 51% of the vote to agree to the wage offer,” Louwrens said.

He added that if a sufficient percentage of votes are gathered, the agreement will be binding on all unions.

Asked whether he is optimistic on the agreement, Louwrens cautioned that it is difficult to say because unions are currently consulting their members.

Public-sector union members have to decide whether to accept the latest 6,2% wage-increase offer by the government.

Minister of Public Service and Administration Geraldine Fraser-Moleketi has expressed confidence that trade unions will sign the new wage offer by Wednesday.

The minister addressed the media in Cape Town on Monday shortly after the opening of a three-day conference for senior mangers in the government.

The new offer has been increased by 0,2% to 6,2% for all public servants, prompting the trade unions to suspend their strike action initially planned for Monday and Tuesday — to be able to consult with their members.

Thousands took to the streets on Thursday, after the government and unions failed to reach agreement after six months of wage negotiations.

Trade unions were demanding a 7% wage increase with the government pegging that at 6%.

“If there is an objection and emotions around the issues and the content, there’s no problem because we know with collective bargaining there is acrimony,” Fraser-Moleketi said.

The government has also proposed that the 2005/06 salary increase be 0,4% above the consumer price index (CPIX).

This will be funded by a delay in implementing an equitable medical-aid plan and housing subsidy for all public servants by a year. The former will be implemented in 2006 and not 2005, and the latter will be phased in over five years rather than four.

The minister added that the multiterm three-year agreement reached makes “good sense” in relation to the expenditure framework.

“What is positive about this round is that there is an opportunity to look at ensuring that we get the kind of remuneration package that is forward looking and takes into account real issues confronting public servants,” she explained.

She emphasised that the multiterm agreement is above macro-benefits.

“I do not believe that this agreement ties the unions down because unionism is not just about increasing wages, it is about mobilising members and looking at different benefits and ensuring a buy-in in the transformation agenda for the public service.” — I-Net Bridge