Labour unions representing South Africa\u2019s 1.3 million state workers demanded 10% pay increases to help them offset soaring electricity, transport and food costs.<\/p>\n
The unions are also pushing for a single-year pay deal because they no longer trust the government to honour longer-term accords, according to a presentation they made to the public sector bargaining council on Wednesday That comes after the government reneged on increases agreed to in 2020, the final year of a three-year deal, on the grounds that it was unaffordable.<\/p>\n
The remuneration of civil servants accounts for almost a third of total government expenditure and bowing to demands for inflation-beating increases would derail the National Treasury\u2019s plans to rein in the budget deficit and bring runaway state debt under control. Credit-rating companies have repeatedly cited South Africa\u2019s high wage bill as a major risk to state finances. The annual consumer inflation rate is currently 5.9%.<\/p>\n
When the government backtracked on the 2018 accord, it argued that the Department of Public Service and Administration didn\u2019t have a mandate from the Treasury to sign off on the terms – a view upheld by the nation\u2019s top court. The unions now want written confirmation from the Treasury that it has delegated the necessary negotiating authority to the department.<\/p>\n
The unions\u2019 other demands include:<\/p>\n
The government is set to respond to the unions\u2019 demands on 19 May. The February budget estimated that the state\u2019s annual salary bill will rise by an average of 1.8% annually over the next three fiscal years.<\/p>\n