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Cabinet: SA can't afford new offer

Sep 02 2010 12:16 Sapa

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Cape Town - Cabinet has urged public service wage negotiators to urgently find an amicable and win-win solution to the nationwide strike, but added even the latest offer is unaffordable.

Briefing the media on Thursday, following cabinet's regular meeting on Wednesday, spokesperson Themba Maseko said the government would continue to do all it could to bring the strike to an end.

Though workers' demands were understandable, this did not take away the fact that the state could only agree to a wage settlement it could afford.

While the latest draft settlement proposal of a 7.5% increase and an R800 housing allowance was unaffordable, government was still willing to accept the settlement, even though it would add another R1.5bn to current spending, which would have to be "taken from somewhere", Maseko said.

Workers are demanding 8.6% and a R1 000 housing allowance.

"It is a complete misunderstanding to suggest that our willingness to accept the draft agreement is proof that there is money lying somewhere in the fiscus," he said.

"Simply put, there is no money available."

The resources to cover the draft agreement proposal would have to come from reducing spending in other areas in the budget.

Salaries already consumed 40% of all tax revenue collected, and increasing the salary bill would have a negative impact, as it would mean fewer resources were available for other services.

Government had a mandate to deliver a variety of services to communities, including housing, roads and clinics, employing more teachers and nurses, supplying books and other "learner" materials, equipment and machines to hospitals, and infrastructure investment programmes to grow the economy.

Maseko said the executive was concerned about the ongoing strike and the negative effect it was having on public services.

"Cabinet urged the negotiators to find an amicable and 'win-win' solution sooner, so that life can return to normal for the thousands of South Africans who are unable to access essential services, such as medical care and preparations for the end of the year examinations," he said.

Government was particularly concerned about the disruption of services in hospitals and schools.

"No nation can allow the sick to die because healthcare workers are on strike. No nation can prevent families from burying their dead.

"No nation can afford to put the future of thousands of young people on hold because of strike action," he said.

 
 
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