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Cape Town - Cosatu has agreed to a 7% salary adjustment for 2015/16 and CPI plus 1% in 2016/17 and 2017/18, according to the Department of Public Service and Administration on Friday.
“The parties met and agreed to amend Agreement 2 of 2015 with Agreement 8 of 2015,” department spokesperson Brent Simons said in a statement.
“[This means] a 7% salary adjustment for 2015/16 and CPI plus 1% in 2016/17 and 2017/18.
“All Cosatu unions have signed and the agreement enjoys 56% majority,” he said.
“The agreement takes effect from 1 April 2015,” he said, adding that the 0.6% deducted from the adjusted salaries of public servants will be paid back to public servants backdated to 1 April.
“Minister [Nathi] Mthethwa welcomes the revised agreement and the conclusion of the wage agreement.”
The announcement follows Fin24's story on Friday that revealed the deal had been struck in the early hours of Friday morning.
Fin24's Terry Bell reported that while the new agreement gives the workers the 7% wage increase initially agreed and reneged on by government, it pegs future pay rises to Treasury estimates of inflation.
“So what this means is that if inflation is greater than 4.8% this year (the Treasury estimate), increases next year will be based on this with no clawback,” said Leon Gilbert, spokesperson for the PSA, largest of the independent labour unions.
READ: Cosatu signs controversial new govt wage deal
Tweets from Cosatu House on the wage deal:
June 26 Cosatu
