Striking public sector unions have put off their demonstrations for the time being after striking an agreement with the government in salary negotiations until 2022.
But, discussions for the fiscal year 2023 are expected to heat up, with all unions maintaining strong in their pursuit of double-digit compensation hikes.
On Tuesday, the National Education Health Workers’ Union (Nehawu), the Police and Prisons Civil Rights Union (Popcru), and the Democratic Nursing Organisation of South Africa (Denosa) signed an agreement with the Department of Public Service and Administration (DPSA) that ended the wage dispute for the fiscal year 2022.
The unions that first refused the government’s offer last year (a 3% baseline offer unilaterally enforced in October and a 4.5% non-pensionable add-on) have agreed to address the problem as part of the 2023 wage talks.
In separate statements on Wednesday, Nehawu and the DPSA said they would head back to the negotiation table to discuss 2023/2024 salary increases, and committed to dealing with the 2022/2023 dispute as part of the latest round of negotiations.
A special council meeting was called late Wednesday afternoon to allow unions to table and submit any outstanding issues from the 2022/23 wage discussions, according to the two.
Until last week, the unions had withdrew from the latest round of discussions, which began in mid-February.
The unions strongly opposed the government’s combined 7.5%, prompting them to send strike letters to their employers.
Nevertheless, on March 9, just days after Nehawu went to the streets, a Public Service Co-Ordinating Bargaining Council (PSCBC) facilitation procedure was launched while public services were disrupted, resulting in the latest accord.
The strike, which has hampered critical services such as those in the health sector, has continued into this week.
“The conclusion of the agreement will ensure a proper balance in adherence to the constitution’s provision on the right to strike and the mandatory requirements regarding the designated essential services,” Nehawu said in its statement.
The union noted that the agreement concluded that the government would not resort to unilateralism in the event of a dispute but that it would exhaust all available options.
However, the Public Servants Association (PSA) has rejected the government’s fresh 7% wage rise offer for the fiscal year 2023/2024, indicating that a public employees’ strike is not totally off the table.
In light of South Africa’s growing cost of living, the union, which represents 235 000 workers from Home Affairs, border posts, teachers, and other positions, is pushing for a 10% raise.
“The PSA remains resolute on its mandated demand for a 10% increase. Government’s offer does not consider the escalating cost of living and does not meet the needs of public servants,” the union said in a statement on Wednesday.
The government’s updated offer is an improvement on the 4.7% raise it presented last month at a special council meeting of the PSCBC with public sector unions associated with the Federation of Unions of South Africa (Fedusa).
The PSA has urged the government to present an improved offer, stating that any delays in the discussions cannot be tolerated.
The government is attempting to cut expenditure and sees the country’s salary bill, which has surpassed R700 billion for the current fiscal year, as unsustainable and one of the biggest risks to its fiscal position.
As Finance Minister Enoch Godongwana presented the 2023 budget, he stated that he anticipates compensation for public-sector workers to reach R701.2 billion, above a threshold he previously predicted would be achieved in 2025.
The government spent R690 billion on the pay bill for the fiscal year 2022, which included an extra R14.6 billion paid to support salary hikes following its unilateral adoption of a 3% increase in October last year.