Thu May 23 15:16:35 SAST 2013
Thu May 23 15:16:35 SAST 2013

Government, workers closer to wage deal

Jun 26, 2012 | Reuters | 18 comments

Could add extra R10 billion to budget spend

 A housing perk for government employees costs South Africa as much each year as its court system 

Unions representing about 1,3 million South African state workers and the government have narrowed differences on a wage deal, nearing a settlement on pay rises.

A union official said on Tuesday the government had offered a three-year deal with a 6,7% increase for this year, with second year increases of inflation plus 0,7% and third year increases of inflation plus 0,5%.

“Negotiations seem to be back on track,” said Chris Klopper, spokesman for the Independent Labour Caucus, one of the more than a dozen unions in contract talks with the government.

Talks over pay increases broke down last week, raising the threat of a strike that could shut hospitals and schools.

The government had offered a 6,5% wage increase this year while unions were looking for a figure over 7%.

Public services minister Lindiwe Sisulu said last week the 6,5% offer would swell spending and cost the government about 10 billion rand ($1,2 billion) more than had already been set side.

Wages for government employees are the largest sector of state spending, equivalent to more than 40% of tax revenue.

A perk to provide civil servants with about $100 a month (about R800) to help them with housing ends up costing South Africa as much each year as its court system.

Union officials said the government is looking to cut the amount it spends for housing allowances, which could pose a stumbling block.

Talks are set to continue but no date has been given for the next bargaining session.

Comments

Thu May 23 15:16:35 SAST 2013 ::
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Jun 26, 2012

tpaz

Leaders please lead by example.....please take a 5 % salary cut across the board for all Ministers, deputies, DGs..MECs....


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Jun 26, 2012

malemaforpresident

tpaz
Leaders please lead by example.....please take a 5 % salary cut across the board for all Ministers, deputies, DGs..MECs....
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NOT IN THE DOG'S LIFETIME NXAAA


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Jun 26, 2012

Papage

By the way, who are Government workers? Police, Soldiers, Teachers, Doctors, nurses, cousilors, street cleaners(Town and suburbs only), some of them don't deserve a cent raise, they are doing nothing.
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Jun 26, 2012

Kinggeezo

@ tpaz

5% is nothing, 15% and for the Zoom to keep 1 wife on the state's books is more like it. Seeing that he likes culture so much, there is a sying that goes 'indlovu ayisindwa ngumboko wayo'. Why should all South Africans carry 'umboko' walendoda?
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Jun 26, 2012

GigiMavalani

Does the government also look at the inflation when they increase prices of electricity, water, fuels and other levies?? if no, why inflation plus 0,7% and third year increases of inflation plus 0,5% when they want to increase wages of public servants? The public must be able to differentiate political office bearers, Senior Managers and mere public servants!!!!!!!!!!!
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Jun 26, 2012

letitbe

Maybe its about time we hit the streets and leave offices empty. We are being taken forgranted and less appreciated for the servives that were offering. What is happening to the housing scheme that was also on last years negotiations?
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Jun 26, 2012

Hail

That woman is little like Mr Molketi. the government will lose R10 billion....... what about the billions of rands the government has lost through the corruption by the very poeple in power? The money that has been lost through corruption is fine? Here is the solution decrease all the money from the MP members and give it to the public servants. Simple then the problem is solved. I have a problem when they not planning ahead and they expect to throw anything they like to the public servant. Since 1994 most of the public servant cannot afford to buy houses, the only people that have houses in the public servant are those benefited from the previous government but they cannot see that.
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Jun 26, 2012

Bingo-Ingo

Oh will I be boring you if I become nostalgic a bit?? I remember the good old apartheid days. The annual increase was never..........ever below a two digit figure. On our birthdays we used to get a 13th cheque plus another monetary increase. There were basically two salary increases per annum. Then came the new order and things went from bad to worse. What they are squabbling about as we speak, is very trivial. Gone are the good old where an Afrikaans male who could not write his name properly was supervising the graduates from other race groups and white females.
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Jun 26, 2012

Impela

Oh will I be boring you if I become nostalgic a bit?? I remember the good old apartheid days. The annual increase was never..........ever below a two digit figure. On our birthdays we used to get a 13th cheque plus another monetary increase. There were basically two salary increases per annum. Then came the new order and things went from bad to worse. What they are squabbling about as we speak, is very trivial. Gone are the good old where an Afrikaans male who could not write his name properly was supervising the graduates from other race groups and white females.
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Yawn....yes your nostalgia is boring and not a bit, quite a lot and so so selective.
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Jun 26, 2012

clevergirl

ms minister wat u r sayin dasnt make sense.hw much r u politicians earning,compared 2 wages of da poor public servants.i tink u nid 2 witdro ur weds,its n insult.da poor pipl r da once dilin wit wateva mess dat u 2 da top create n yet u hv da guts 2 stand up n say al da nonsence,cum on
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