Registered users can save articles to their personal articles list. Login here or sign up here

Public sector strike off as wage deal signed

Trade unions accepted a pay offer which exceeds Treasury’s provisions for salary increases.

A strike by South African public sector workers planned to start on Monday was called off after most trade unions accepted a government pay offer that exceeds Treasury provisions for salary increases.

The stoppage was cancelled when more than 50% of unions in a bargaining council agreed to the wage settlements.

Affiliates of Cosatu trade union, which is closely aligned with the ruling African National Congress and represents the bulk of 1.3 million teachers, police officers and nurses, signed the three-year wage deal. This awards increases of up to 7% in the first year, and of up to projected inflation rate plus 1% in the second and third years.

The National Treasury has previously warned about high wage settlements and their potential impact on South Africa‘s struggling economy.

“The agreement has now been signed by a 65.74% majority of all parties, therefore as government we understand that all forms of industrial action now fall away,” Ayanda Dlodlo, the minister of public service and administration, said in a statement on Friday.

She said the deal, which includes a better housing allowance, exceeds by R30 billion ($2.30 billion) provisions made by the Treasury for salary increases over the next three years of R110 billion.

Dlodlo added that the government would look to streamline the public sector with early retirement and severance packages.

South Africa‘s volatile rand was buffeted earlier in June when data showed gross domestic product shrank by 2.2% in the first quarter of 2018, with significant falls in agriculture, manufacturing and mining.

Hundreds of members of the Public Servants Association did stop work on Monday at the South African Social Security Agency (Sassa), but the strike was largely symbolic as they were only a small proportion of the PSA 230 000 members.  

Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.


To comment, you must be registered and logged in.


Don't have an account?
Sign up for FREE


Insider GOLD
ONLY R63pm

Moneyweb's premium subscription is a membership service which will give you access to a number of tools to take charge of your investments.
Or choose a yearly subscription at R630pa - SAVE R126

Get instant access to all our tools and content. Monthly subscription can be suspended at any time.



Follow us:

Search Articles:Advanced Search
Click a Company: