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Public sector wage, Labor Union demands 10% salary raise

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south african workers union

The South African public sector wage conflict is heating up, with labor unions demanding a 10% compensation increase, while commodity prices continue to escalate.

According to a presentation delivered to the public sector bargaining committee on Wednesday, the union is pressing for a one-year wage contract because they no longer trust the government to follow longer-term agreements.

This follows the government’s refusal to honor increases agreed to in 2020, the final year of a three-year accord, claiming they were unaffordable.

Civil worker pay accounts for over a third of all government spending, and giving in to demands for inflation-beating raises would jeopardize the National Treasury’s efforts to reduce the budget deficit and put the state’s ballooning debt under control. South Africa’s huge wage bill has been regularly recognized by credit rating agencies as a serious concern to the country’s budget. The yearly rate of consumer inflation is now 5.9%.

The government contended that the Department of Public Service and Administration didn’t have a mandate from the Treasury to sign off on the conditions when it backed out of the 2018 agreement, which the Constitutional Court supported. The unions now demand official confirmation from Treasury that the department has been given the requisite bargaining authority.

Other requests made by the unions include:

Housing stipends will be increased by R2 500 each month.

When calamities hit, like as the coronavirus epidemic, workers are entitled to 12 percent of their base income as compensation.

Teacher assistants, community workers, and reservists in the security force all have permanent jobs.

On May 19, the administration is expected to react to the unions’ demands.

The state’s yearly pay cost is expected to climb by an average of 1.8 percent annually over the next three fiscal years, according to the February budget.

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