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Members of the Public Servants Association protest to drive home their wage demand. Picture: NQUBEKO MBHELE
Members of the Public Servants Association protest to drive home their wage demand. Picture: NQUBEKO MBHELE

The department of public service & administration has increased its wage offer to the country’s 1.3-million government workers from 3% to 4.7%, which is above the inflation rate.

According to data from Stats SA, annual consumer inflation cooled for a fourth consecutive month, easing to 3.8% in September from 4.4% in August. This is the lowest inflation print since March 2021, when the rate was 3.2%.

The revised offer from the government comes after it rejected labour’s demands for a 12% wage increase at the public service co-ordinating bargaining council (PSCBC), where unions, in turn, rejected the government’s 3% offer. 

The parties then elected to go to a facilitated process under the auspices of the PSCBC to try to find common ground. The facilitation process began on October 8. 

PSCBC general secretary Frikkie de Bruin said: “Parties to the PSCBC engaged in facilitation over the last two weeks to find amicable solutions. During the facilitation progress was made as to close the gap between the Cola [cost of living adjustment] demand of labour and the offer from the employer.” 

De Bruin said the employer proposed adjustments to the housing and danger allowances in an attempt to respond to the demands of labour. “Various of the demands such as the demand on a death grant and a bursary payment for children of public servants have been placed into a process as to collectively try to find solutions over a longer period,” he said. 

“There are also areas where there is still disagreement or where very little progress is made, such as the increase to the medical aid subsidy, pay progression and the abolishment of levels 1-3. Parties will continue to seek solutions on these areas.” 

The unions representing teachers, nurses, police and prisons officials have requested time to consult their members on the detail of the proposals.

“As the council we would want to allow them to do this. Therefore, we cannot divulge any more detail at this stage. There is no date for the return of parties to the negotiations after the consultation, however, it is hoped that the consultation will be finalised with the next 14 days,” De Bruin said.

Reuben Maleka, GM of the Public Servants Association, which represents more than 245,000 government employees, said: “The employer has revised its wage offer to 4.7%. That’s where we are right now. We are busy balloting members to see what the appetite on that current offer is. Parties should be meeting at the PSCBC again next week, say Thursday or Friday.” 

The unions’ initial demands, among others, included a R2,500 housing allowance increment across the board, a nearly two-fold rise in the danger allowance to R1,000, a performance bonus, bursary schemes for dependents of employees and permanent employment for education/teacher assistants, community health workers and reservists. 

The wage demands for the 2025/26 financial year were viewed as putting finance minister Enoch Godongwana in a tight spot as they threaten to undermine his efforts to stabilise the country’s finances. Godongwana has kept a tight lid on the R700bn-plus wage bill which was once the fastest-growing expenditure item in the budget.

In the 2024 Budget Review, the government pencilled in a total wage bill of just more than R750bn for the 2025/26 fiscal year, or about 4.5% higher than the previous year. 

mkentanel@businesslive.co.za

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