The Public Servants Association (PSA), one of the country’s largest public sector union representing over 235,000 workers, has threatened to go on strike after the government formally tabled a 0% wage increase for the 2021/2022 financial year.
The offer was tabled during negotiations at the public sector co-ordinating bargaining council (PSCBC) on Thursday, a move that could put it in direct confrontation with the unions that have already taken it to court for defying earlier agreements.
“We will go on strike and shut down the public sector. We will be on the streets, demanding the government takes us seriously,” said PSA assistant GM Reuben Maleka said.
If they follow through on their threat, this could cripple public service delivery that has already been affected by the Covid-19 pandemic.
“The offer for the cost-of-living adjustment for the 2021/2022-financial year was a 0% increase. The rest of the substantive demands by labour were also rejected,” Maleka said.
The unions are demanding a wage increase of the consumer price index (CPI) plus 4% across the board for 2021/2022, which is above the 2.9% inflation rate recorded in February and the 4.3% average the Reserve Bank expects for 2021.
The unions’ other demands include a R2,500 housing allowance, a special risk allowance of 12% of basic salaries during national disasters such as Covid-19, and the filling of all vacant posts in the public service.
Finance minister Tito Mboweni announced deep cuts to the public sector wage bill over the next three years — a decision the unions described as a “declaration of war”.
Late in 2020, the Treasury, which is seeking to contain spending, won a court case after its decision not to implement the last part of a three-year agreement - which would have cost R38bn - angered unions. The matter is scheduled to be heard at the Constitutional Court on August 24.
Proposed reductions to the wage bill, as highlighted in the 2021 Budget Review, amount to R303.4bn from 2020/2021 to 2023/2024.
The proposed reductions consist of the R160.2bn announced in the 2020 budget and an additional R144.2bn over the medium term. The wage bill will account for R1.97-trillion, or 32%, of consolidated government expenditure over the medium term.
Maleka said they demanded that the employer should revise its 0% offer to prevent the “dispute process being invoked”.
“The employer is due to respond with a revised offer on April 23. The PSA wants to make it clear that this process may eventually result in widespread industrial action as public servants can no longer pay the price for the country’s economic woes fuelled by rampant fraud, corruption and mismanagement,” he said.
Meanwhile, the PSA, which represents more than 5,300 employees at the SA Revenue Service (Sars) said it was disappointed that the final year of the salary agreement signed in 2019 will not be implemented.
According to the wage deal, employees were supposed to receive a 6.2% wage increase on April 1. Maleka called on Mboweni and Sars commissioner Edward Kieswetter to implement the increase “without delay”.
He said they believed the public sector wage dispute to be heard at the apex court in August “played a role in the decision by Sars not to implement the last leg of the salary agreement”.
“This action by Sars has angered employees as they witness attempts by their employer to further reduce their benefits. The travel allowance, bursaries and leave encashment are among the benefits that the employer is currently trying to unilaterally remove from employees.”
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