BUSINESS MAVERICK: Government isn’t budging on salary increases for public sector workers

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There are 1.2 million public sector workers including doctors, nurses, teachers, police, correctional services officers, and workers in three spheres of government. They hoped that Tito Mboweni would honour the three-year wage agreement that promises them salary increases of between 4.3% and 5.4% in 2020. But Mboweni kicked the wages can down the road.

A freeze on salary increases for public sector workers is a political hot potato at a time when the government needs to rein in ballooning expenditure while responding to the Covid-19 pandemic.

“Our overall objective is for a compensation system that is fair, transparent, and fiscally affordable. And it is within this framework that we hope the minister will lead the process,” Mboweni said. The minister in question is Senzo Mchunu, whose Public Service and Administration department oversees the terms of employment in the public sector. Mboweni deferred questions about the compensation of workers to Mchunu.

This angered trade unions, who have challenged Mboweni’s decision at the Labour Court in Johannesburg and the Public Service Co-ordinating Bargaining Council, where both parties negotiate terms of employment. Meanwhile, at least five trade unions have not joined Cosatu-affiliated unions in the arbitration process. Instead, the Public Servants Association , the National Professional Teachers’ Organisation of SA, Health and Other Services Personnel Trade Union of SA, the SA Teachers Union and the National Teachers Union have approached the Labour Court to enforce contractual terms of the wage agreement, saying they are still binding on the government.

“It is very insensitive that public sector workers, who are on the frontline during the pandemic, are not getting promised salary increases. Also, it is showing how the government and neoliberal policies don’t care about whether they are supporting essential service workers or not,” said Maluleke.

 

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BUSINESS MAVERICK: Moody’s casts doubts on South Africa’s bid to stabilise debtRating agency Moody’s said late last week that South Africa’s goal to bring its surging debt load under control ‘will be very difficult to achieve’ and ‘unlikely’. That may seem like a statement of the obvious, but it is telling that it was made by Moody’s. If the rating agencies are not convinced by Treasury’s plans, more downgrades could be in the offing, which in turn will make the goal of debt stabilisation even more elusive.
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