Public service unions say they are closer to securing a two-year wage agreement with the government, beginning on April 2023, after negotiations at the Public Service Co-ordinating Bargaining Council which started in February.
Those affiliated to union federation Fedusa and Cosatu-affiliated Sadtu, which make up 53.9% of unions in the public service, initially demanded a 10% increase for 2023/24 only and a R2,500 housing allowance.
On February 17 the employer offered 7%, upping this on March 17 to 7.5% for the first year.
Sadtu general secretary Mugwena Maluleke said the offer meant the non-pensionable cash allowance was converted into a pensionable salary at an estimated 4.2% and an additional 3.3% in pensionable salary.
“What is true is that R1,000 is now converted into a pensionable increase, meaning it will then improve the notch. We said once it is included there, this is going to be taxed. The employer must then compensate workers by including the tax portion of that R1,000.”
Makuleke said the conversion of the R1,000 cash gratuity was only possible if members accepted the offer.
“Let us say those on level 1 receive R1,220, the R220 is a tax portion of the R1,000 pensionable increase and it should not be the employee who carries that burden. We want to ensure workers enjoy R1,000 in their pocket. R1,000 must be cushioned in terms of tax.”
He said unions were consulting members and would revert to the chamber and the state regarding workers' attitudes towards the 7.5% average increase, which was on a 12-level sliding scale designed to narrow the wage gap between those earning less and those regarded as high earners.
Public sector unions closer to reaching two-year wage agreement
Image: 123RF/Andriy Popov
Public service unions say they are closer to securing a two-year wage agreement with the government, beginning on April 2023, after negotiations at the Public Service Co-ordinating Bargaining Council which started in February.
Those affiliated to union federation Fedusa and Cosatu-affiliated Sadtu, which make up 53.9% of unions in the public service, initially demanded a 10% increase for 2023/24 only and a R2,500 housing allowance.
On February 17 the employer offered 7%, upping this on March 17 to 7.5% for the first year.
Sadtu general secretary Mugwena Maluleke said the offer meant the non-pensionable cash allowance was converted into a pensionable salary at an estimated 4.2% and an additional 3.3% in pensionable salary.
“What is true is that R1,000 is now converted into a pensionable increase, meaning it will then improve the notch. We said once it is included there, this is going to be taxed. The employer must then compensate workers by including the tax portion of that R1,000.”
Makuleke said the conversion of the R1,000 cash gratuity was only possible if members accepted the offer.
“Let us say those on level 1 receive R1,220, the R220 is a tax portion of the R1,000 pensionable increase and it should not be the employee who carries that burden. We want to ensure workers enjoy R1,000 in their pocket. R1,000 must be cushioned in terms of tax.”
He said unions were consulting members and would revert to the chamber and the state regarding workers' attitudes towards the 7.5% average increase, which was on a 12-level sliding scale designed to narrow the wage gap between those earning less and those regarded as high earners.
Maluleke said the former would secure a higher percentage.
In 2024/25 the employer has proposed a pensionable increase based on projected CPI.
Maluleke said the employer said it could not afford a housing allowance, but committed to speeding up the implementation of government’s employee housing scheme.
Meanwhile Nehawu said the employer had reneged on renegotiating the state's unilateral implementation of the 3% wage increase and R1,000 cash gratuity for the 2022/23 year.
The union went on strike from March 6 to 15 demanding a resolution to the 2022/23 unilateral wage implementation.
“After settling the strike with the state we signed a settlement agreement that also directed that we go back to the negotiating table and that the employer will then attend to our 2022 issues. We have done that from March 16.
“But unfortunately the employer has reneged on that agreement and is refusing to entertain our 2022 issues. In this regard the new agreement will not bind us in as far as 2022/2023 issues are concerned, but will bind us on 2023/2024 issues,” Nehawu spokesperson Lwazi Nkolonzi said.
TimesLIVE
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending
Related articles
Latest Videos