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Johannesburg - Finance Minister Pravin Gordhan's proposal of a moderate wage increase for public service workers will lead to a dispute, Nehawu said on Tuesday.
"The minister's statement... can only lead to unnecessary wage dispute which the 2007 agreement sought to avoid," the National Education, Health and Allied Workers' Union said in a statement.
"The public service is still incapacitated by unfilled vacancies, especially in critical services such health, as a result of Gear's (growth, employment and redistribution policy) austerity measures," the union said.
Gordhan said in his medium-term budget policy statement (MTBPS) the 2012 budget would provide for more "moderate cost-of-living adjustments for public sector employees than in recent years".
Nehawu said this announcement was made before the start of the negotiations at the Public Service Collective Bargaining Council.
"We are willing to engage with government on the issue of moderate wage increases for public servants until the overall review of the public service remuneration policy has been finalised," the union said.
"We believe it is a myth that public servants are overpaid, especially professionals and although we are sympathetic to the ailing economic situation we are not going to talk wage increase moderation while the status quo on remuneration policy remains."
According to the MTBPS, substantial improvements in public service remuneration and increases in employment have raised the wage bill to about 42% of government revenue, up from 31% four years ago.
"Over the medium term, salary increases for all role players need to be given careful attention.
"Difficult decisions are required to ensure that scarce resources are directed towards economic development and more effective service delivery, while ensuring that debt levels are sustainable."
The proposed framework for the 2012 budget provides for a 5% cost-of-living adjustment for public sector employees.
An extra R1.2bn has been set aside for the rest of the 2011 financial year to cover the costs of higher-than-expected salary adjustments in national departments.
The union accused the mini budget of lacking boldness.
It "noted with concern and dismay the lack of boldness in the overall fiscal stance taken".
"This is worrying, considering that this country is taking strain from an endemic crisis of unemployment, poverty and inequality," Nehawu said.
"We have seen countries with far lower levels of unemployment and much higher levels of public debts taking bolder steps in addressing their own challenges of unemployment, inequality and poverty."
The National Treasury said South Africa's public debt would reach 40% of gross domestic product (GDP) in 2015. This was at a time when most countries with public debt above 50% of GDP were implementing far-reaching job creation programmes, Nehawu said.
