Public service wage deal reached

Johannesburg - Public service unions and government have reached a salary agreement after almost six months of negotiation, the Independent Labour Caucus (ILC) said on Tuesday.

State employees will receive a 6.8% salary adjustment, backdated to May 1 this year, while other benefits including medical aid and housing will be subject to further negotiation.

Pensioners will continue to receive free medical aid, and their benefits will be aligned with current employees.

ILC spokesperson Chris Klopper said all parties participated with great circumspection and maturity, avoiding the danger of labour unrest in the public service.

The 6.8% nominal increase ensures that workers receive a real increase of between 1.8% and 2%, once inflation of between 4.8% and 5% is taken into account.

In addition, state employees qualify for an annual salary progression, averaging between 1% and 1.5%, he said.

"Ideally, parties should have been able to also finalise the new housing benefits and the equalisation of medical subsidy," Klopper said.

"However, the agreement provides a solid base to enable the ILC to engage the employer during a next phase of negotiations on these matters with effect from August 22 to ensure an improved dispensation."

Outstanding matters include the drawing up of a minimum service agreement for essential services during periods of labour unrest, as well as long service awards, night shift allowance, and the recognition of improved qualifications.

A remuneration policy for the public service, capped leave, pensions and a possible multi-term agreement also need to be determined.