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Johannesburg - The Public Servants Association (PSA) has declared a wage dispute with the state after pay talks broke down, the union said on Thursday.
"In view of the fact that the employer was not willing to improve on its offer and insisted on taking away an existing right, the PSA is left with no other option but to declare a dispute," general manager Danny Adonis said in a statement.
Talks in the Public Service Coordinating Bargaining
Council (PSCBC) deadlocked in May, with the state offering a 6.5%
rise over three years versus labour's demand of an 8%
increase.
Labour also demanded the current R800 housing allowance be increased to R1 000.
The state intended replacing the current housing allowance with a housing scheme, Adonis said.
After more PSCBC meetings, the state made its final offer on Wednesday for the 2012/2013 financial year, which workers rejected.
"The dispute will be resolved in terms of the PSCBC's dispute resolution procedures," said Adonis.
Both parties had 30 days to resolve the dispute and if no resolution was reached, the PSA would not prevent its members from going on strike, he said.
As far as the government was concerned, negotiations had not been broken off, department of public service and administration spokesperson Dumisani Nkwamba said.
The government had tabled its settlement offer at 6.5% and a 1.5% increase for all public service employees, depending on performance, and a R900 housing allowance, he said.
"The negotiations have not been broken off, and therefore unions have been given 21 days to consider the offer and consult their members, and effectively respond to the government's offer."
The government was operating within the parameters of the PSCBC, said Nkwamba.
