BUSINESS MAVERICK: Government makes a U-turn in fight with unions over public servants’ salary increases

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After holding the line on wage freezes for public servants since February 2020, the government has had a change of heart. A day before the start of court proceedings over salary increases, the government now wants to enter into out-of-court settlement talks with public servants.

After insisting since February that public servants will face a pay squeeze and not receive inflation-busting salary increases to help restore public finances, the government had an abrupt change of mind on Tuesday 1 December.

But the trade unions that have dragged the government to court – including the Public Servants’ Association and others affiliated to Cosatu – do not support the postponement and want the court case to go ahead. But credit rating agencies Moody’s and Fitch, which in November downgraded SA even deeper into “junk” territory just six months after their previous downgrades, saw the U-turn by the government coming on public servant wages. Both rating agencies cast doubt on the government’s plan to implement wage freezes for public servants over the next three years, saying there is no political will for it to forge ahead with this unpopular decision.

At the heart of the court case is trade unions looking to enforce the final year of a three-year wage agreement. The wage agreement was signed by the government and trade unions in 2018 at the Public Service Coordinating Bargaining Council, where both parties negotiate terms of employment. The year 2020 is the last leg of the wage agreement, which proposed that public servants receive salary increases of between 4.4% and 5.

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It's sheer lunacy when a country is ruled by the Unions who add no value to anything but where those who are a part of the hierarchy line their pockets and enjoy a lavish lifestyle.

people better stop paying taxes and save your self, by making sure you have enough to survive. government does not care about anyone or anything other than themselves. people will need to arm themselves because the police/army will not protect you from the tyranny of government!

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