Unions to explain offer to members

Johannesburg - The protracted public servants' strike continued on Thursday, with trade federation Cosatu and the Independent Labour Caucus (ILC) declaring a "preliminary" rejection of the government's latest pay offer.

Following a meeting between the two on Thursday, ILC chairperson Chris Klopper said: "Some of the unions found it extremely difficult to sell to their constituencies. They will now enter into processes of explaining the document to representatives and members."

The document goes beyond the widely reported 7.5% wage increase and R800 housing allowance offer, and includes proposals on medical scheme payments and the minimum service level agreement.

"The ILC decided that because the majority of unions were leaning towards the negative, we won't have any other option other than that we also reject the offer."

But said, Klopper, this was subject to the ILC and Congress of SA Trade Unions continuing consulting their members.

"They must factor in if further participation in industrial action will render further gains and what public opinion is, and then most of all what the cost of further strike action will be in terms of no work no pay in terms of gains."

They hoped for a decision by Monday.

"Labour unity is important and we must protect each other and therefore it is a question of further unity."

According to a copy of the latest offer on the Public Servants' Association website, the government had withdrawn the offer on the table on August 20. At the time, the government said it intended unilaterally implementing the offer, because it had no more money.

The new proposal, made on August 31, consists of an across-the-board increase of 7.5% and a housing allowance of R800 a month, compared with the current R500, both with effect from July 1.

The government further committed itself to developing and implementing a home ownership scheme; investigating the equalisation of the medical aid subsidy; and finalising the minimum service level agreement.

It intended to implement by April 1 a post-retirement medical subsidy for Government Employees Medical Scheme members which was aligned with that of serving employees.

It also wanted to align the negotiation processes with the budgeting process, with a new round of talks starting in October and concluding on July 31.

Part of the agreement would be measures for public servants to return to work after the strike.