/ 17 May 2007

Govt wage offer adds up to ‘more than 6%’

The wage offer by the government to public-service unions does amount to 12%, Public Service and Administration Minister Geraldine Fraser-Moleketi said on Thursday.

”Unpacking the government’s offer” for the media in Pretoria, Fraser-Moleketi said that while the government is offering a 6% wage increase, the total offer amounts to much more.

”The overall package amounts to much more than 6% and hence employees going out on strike over 6% go out with insufficient information,” she said.

The total expenditure, which includes the wage increase, implementation of outstanding offers, sectoral agreements and increase in staff, is set to grow by 12%.

Fraser-Moleketi said the government’s offer includes a multi-term wage agreement, implementation of occupation-specific dispensations that will affect up to 80% of public servants, revisions of certain allowances by 25% and improvements on the government medical subsidy.

She maintained that the offer is misunderstood and that unions have not taken the opportunity the government gave to explain the offer.

”Clearly there is a need to unpack it in order that there is clarity on what the implications are,” she said.

The government is offering a 6% wage increase this year while unions are demanding 12%.

Fraser-Moleketi said the government’s offer will cost the state R9,3-billion more while the unions’ demands will amount to R198-billion more.

The unions’ demands would include R15-billion on salaries alone, while pay progression would amount to R171-billion, housing allowances to R9,5-billion and the medical subsidy to R3,5-billion.

”R200-billion additional expenditure on compensation for employees will equal R393-billion, which would increase government expenditure to R744-billion — which accounts for 52,9% of non-interest expenditure and 20,3% of GDP,” Fraser-Moleketi said.

Meanwhile, the South African Democratic Teachers’ Union and the South African State and Allied Workers’ Union have become the first two public-service sector unions to officially notify the government of their intention to strike.

Fraser-Moleketi said she received notification from the two Congress of South African Trade Unions (Cosatu) unions on Thursday.

In terms of legislation unions must give the employer, the state, seven days’ notice before embarking on a protected labour action.

On Monday Fraser-Moleketi was still dismissing the unions’ threat to strike as ”robust campaigning through the media”.

On Tuesday, however, the eight Cosatu affiliates announced that May 28 will be the start of a full-blown ”indefinite” strike.

The Independent Labour Caucus said it would probably start an indefinite strike on June 4. — Sapa