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Public sector pay talks head towards deadlock

Cape Town - With five days to go before the current wage agreement expires, negotiations between the government and the public sector unions seem to be heading for deadlock. And, in something of a role reversal, it was government negotiators who informed  public sector unions that a deadlock was looming.

At the same time, government negotiators have refused to budge from their demand that pay increases in the public sector should be based on a project inflation rate of 4.8% for the coming year. The combined unions across all three federations and the independent organisations represented have derided this inflation projection as “nonsense”.

The union position was summed up by National Professional Teachers Organisation president Basil Manuel: “The increase in electricity tariffs alone will push the inflation rate higher, let alone the price rises for fuel.”  

What has particularly angered - and apparently united - the various unions is the previously unheard of gambit by the government in lowering its initial offer when negotiations began. In December, the offer tabled was 5.8%, but when the talks began, this was lowered to 4.8%.

According to police union Popcru, this was increased on Thursday to 5% and was seen as “another slap in the face”.  The move came on top of state negotiators refusing to take on board union demands for the equalisation of housing allowances. As matters now stand, the full allowance is paid only to bond holders.

Government negotiators have also tabled a proposal that those renting accommodation should have R500 a month of their housing allowance put into a government savings fund for ten years. “It looks very much as if they want a fight because they think, with Cosatu in disarray, the unions will back down,” said a member of a Cosatu affiliate who did not want to be named.

However, the unions have finally won their long-standing demand for the equalisation of all medical aid schemes. The offer, acceptable to the unions, is for an increase of 28% in the subsidy to the Government Employment Medical Scheme.

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