Wage talks on shaky ground

TRICKY TALKS: Acting Public Service and Administration Minister Nathi Mthethwa is in wage talks with a number of public sector unions Picture: ARNOLD PRONTO
TRICKY TALKS: Acting Public Service and Administration Minister Nathi Mthethwa is in wage talks with a number of public sector unions Picture: ARNOLD PRONTO
Barely three weeks after the signing of a wage deal between the government and public sector unions‚ the agreement is on the brink of unravelling on a technicality‚ and the Public Service Coordinating Bargaining Council (PSCBC) is seeking legal advice on the deal.

On Monday two of the largest unions in the public service‚ the South African Democratic Teachers Union (Sadtu) and the National Education Health and Allied Workers Union (Nehawu)‚  said they were consulting with members about whether to pursue legal action or go on strike.

The agreement signed on May 19 was for a 7% increase.

However‚ last week the government sent out a notice invoking a clause from the previous wage agreement – which lapsed at the end of March – indicating  it was deducting 0.6% to “claw back” from paying too much based on a higher-than-projected estimate for the consumer price index (CPI).

This means that for the first year‚ public sector workers would obtain an increase of 6.4% instead of 7%.

PSCBC general secretary Frikkie de Bruin on Monday said if the CPI was understated,  additional amounts would be paid when the actual figures were released and money would be deducted if they were overstated.

The deduction or additional payment would be made the following year‚  De Bruin said.

But this time around a “can of worms was opened”.

This was because the state was seeking to effect a clause from a previous agreement and extract the deduction from the new wage deal which forms part of a separate agreement.

De Bruin said the PSCBC was seeking legal advice on the matter and a deadline of June 29 had been set for parties to return to the council for feedback.

The legal opinion would clarify whether the government could deduct the 0.6% from the current wage agreement of a 7% hike.

Adjustments were not a new feature‚ he said‚ but this was the first time the employer would be taking a portion back.

“It has always happened that CPI was understated so employees always received ... this is the first time ever government is in a position to take back‚” he said.

He expected that in the second year of the current wage deal‚ the government would have to pay extra to employees to account for the CPI adjustment.

Chief negotiator for unions aligned to  Cosatu,  Sadtu general secretary John Maluleke, on Monday said workers would not accept less than 7%.

“Irrespective of the legal opinion‚ the state must implement 7% or let’s cancel the agreement and start afresh‚ which could lead to a strike.”

Maluleke said the government was negotiating in “bad faith”.

He said in the past the issue surrounding the CPI adjustment formed part of the agreement and was discussed in the council.

However‚ this time the government kept silent about it throughout the eight-month-long talks and “surprised” workers with it after the agreement was signed.

“For eight months they did not raise this ... not even in bilateral talks with the Independent Labour Caucus‚” he said.

Maluleke said members of his union were “very angry” and threatened not to mark mid-year exam papers.

Union leaders had assured workers that the issue would be ironed out.  But workers would not settle for less than 7%.

The first time the new increase would reflect in salaries would be on June 15 – and  Maluleke said he hoped it would be 7%.

Nehawu spokesman Sizwe Pamla said his union was canvassing members on the approach they should take to the “disagreement”.

He said members’ views were being sought on whether to go the legal route or pursue mass action.

De Bruin said salary increases would not be paid until legal opinion clarified matters. This implied  there would be a delay in the  increases.

Acting Public Service and Administration Minister Nathi Mthethwa said the adjustment was simply to take the accurate CPI figures into account as a result of over-projection in the last round of negotiations three years ago.

Meanwhile‚ wage talks at local government level also hit a snag on Monday as the South African Municipal Workers Union (Samwu) declared a dispute with the South African Local Government Association (Salga).

The matter has been referred to the bargaining council for conciliation after three rounds of wage talks failed to yield results.

“Should both parties fail to get a mutually beneficial solution we will get a certificate of non-resolution which will lead to a protected‚ full-blown nationwide strike‚” said Samwu’s Papikie Mohale.

Samwu represents about 160000 of 270000 workers in local government.

Salga spokesman Tahir Sema said the offer was revised up to 5.9% and Samwu was demanding 11%.

Samwu’s dispute was “premature” and Salga had not ruled out an improved offer.

A strike in the municipal sector would not bode well for delivery in the run-up to the local elections next year. — BDLive

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