LabourPREMIUM

Some unions accept revised 5.5% wage offer for public servants

The offer still needs more than 30% support from other unions to pass the required threshold of 50% plus 1

With limited opportunities in the formal economy, South Africans have turned to new avenues of survival and creativity, says the writer. File photo.
With limited opportunities in the formal economy, South Africans have turned to new avenues of survival and creativity, says the writer. File photo. (REUTERS/SIPHIWE SIBEKO)

Some unions in the public service co-ordinating bargaining council (PSCBC) have accepted the government’s above inflation latest offer of 5.5%. The offer, however, still needs more than 30% support from other unions to pass the required threshold of 50% plus 1. 

PSCBC general secretary Frikkie de Bruin said unions representing the country’s more than 1.3-million public servants were busy consulting members on the latest and final offer of 5.5% as presented in council recently.

Labour has until February 18 to sign the draft agreements in acceptance of the offer. “For now we already have two trade unions, Sapu [SA Policing Union] and Naptosa [National Professional Teachers Organisation of SA] that have signed the agreement, representing 17.6% of the vote weight,” De Bruin said. 

“We still need 32.5%. We are confident that unions will be able to convince their members on the three-year offer, as this agreement also allows for adjustments to the housing allowance, medical aid subsidy and danger allowances.” 

The wage talks started off with the government offering 3%, which it increased to 4.7%, then 5% before finally settling at 5.5%. The revised offer saw unions slashing their demands from 12% to 6% for 2025/26. Consumer price inflation is forecast to average 4.5% in 2025. 

If finalised, the 5.5% deal cements the R700bn-plus wage bill as a big, unpredictable factor amid SA’s efforts to stabilise its finances. It could also put pressure on finance minister Enoch Godongwana to make good on his promises to convince 30,000 public servants over the age of 55 years to take early retirement packages as part of his broader plan to bring down the wage bill. The Treasury hopes to save R2bn each year from the initiative. 

According to the proposed wage offer, wage increases for the 2026/27 and 2027/28 financial years would be indexed to the consumer price index (CPI). As sweeteners to the proposed deal, the government has offered various increases including the homeowners’ allowance (from R1,784 to R1,900; danger allowance (R597 to R650); special danger allowance (R849 to R920); and service allowance for police (R700 to R920). 

Naptosa executive director Basil Manuel said it was expected that other unions, especially those from Cosatu, would sign the draft agreement on Monday, thus pushing the deal over the 50% plus 1 line. 

“I’m hoping by the end of today, a majority of unions would have signed. Today is a big day,” Manuel told Business Day on Monday, which was the last day of the 21-day period during which unions needed to indicate whether they accept or reject the offer.

Asked why Naptosa had signed the draft agreement, he said: “Under the current climate this is not a bad deal at all. And there are sweeteners to the deal such as the medical aid and danger allowance for the police.” 

“There are guarantees for the outer years (2026/27 and 2027/28), given the trajectory of inflation we had to try and protect the outer years.” 

Sapu spokesperson Lesiba Thobakgale said: “Sapu initially conducted an economic outlook done by experts in that field, we then presented it to our members when we took a mandate on demands. Thereafter we presented it in council on record. 

“The research gave us 6% as the base of the salary increase with addition of the losses made with the non-implementation of previous agreements. During negotiations we kept constantly taking mandates from our members who mandated us to sign the 5.5%, which is halfway settlement from the 6% with the employer. This includes increases of other allowances like a service allowance for the police, housing, medical aid, access to individual savings on pension for those resigning or those being dismissed.” 

Sapu represents over 100,000 members who are across the public service, including the Border Management Authority, traffic, municipal and metro police officers; private security and correctional services staff. 

Thobakgale said Sapu members lost “a lot over the years in terms of the salary increases and it is time that the food basket of members be cushioned which this agreement seeks to achieve”. 

“We hope for the agreement to reach majority signatures within the prescribed 21 days in terms of council processes so it could be implemented by April 1 2025.” 

Reuben Maleka, GM of the Public Servants Association (PSA), which represents more than 245,000 teachers, nurses and doctors, said: “Our mandate-seeking process is positive, we are busy collating all the data and we should be in a position to sign the draft agreement on Tuesday.”

Sibongiseni Delihlazo, Cosatu’s spokesperson on the public service wage talks, could not immediately be reached for comment.

mkentanel@businesslive.co.za 

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