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Public Sector Union  prepare for  strike action

South African civil employees' labour unions intend to inform the government of their intention to strike next week, escalating tensions in a dispute over salary hikes. Last year, pay negotiations came to a halt when the government rejected union proposals for 10% rises and unilaterally approved a 3% increase. While Finance Minister Enoch Godongwana is

Public Sector Union  prepare for  strike action

Public Sector Union  prepare for  strike action

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South African civil employees’ labour unions intend to inform the government of their intention to strike next week, escalating tensions in a dispute over salary hikes.

Last year, pay negotiations came to a halt when the government rejected union proposals for 10% rises and unilaterally approved a 3% increase. While Finance Minister Enoch Godongwana is scheduled to present the annual budget on February 22, which would include a budget allocation for staff costs for the following three fiscal years, talks on a settlement covering that time period have yet to begin.

The strike notice will be issued on the same day as Godongwana’s budget address, according to eight unions connected with the Congress of South African Trade Unions, the country’s largest labour group, at a press conference in Pretoria on Thursday.

“We are of a view that the employer is not interested in resolving this dispute,” the unions said. “We have resolved to rally our collective might to push the employer to improve the rejected offer and will use everything in our power to register our disdain to the government’s attitude.”

Controlling the wage bill is critical to the government’s attempts to reduce the national debt, which is expected to reach 71.4% of GDP in the current fiscal year. Remuneration now accounts for about a third of state spending, having risen by an average of two percentage points above inflation over the last decade, pushing out spending on other priorities.

While Cosatu unions stated they would not engage in negotiations with the government until it revised its prior pay offer, the Federation of Unions of South Africa announced it would return to the wage negotiating council to negotiate a settlement for the following fiscal year.

Reporting for Business Tech Africa on the funding, tools and strategy shaping the continent's founders and SMEs.

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