Govt. and labour agree on wage hike

Govt. and labour unions have agreed on a three-year wage settlement.

Public Service Minister Lindiwe Sisulu. Picture: Barry Bateman/EWN.

CAPE TOWN - Government and labour unions on Tuesday agreed on a three-year wage settlement until 2015.

The 2012 salary increase backdated to the beginning of May, is 7 percent.

For 2013 to 2015 the increase is Consumer Price Index (CPI) plus one percent.

Public Service and Administration Minister Lindiwe Sisulu said as part of the agreement the employer and labour unions have committed themselves to a service delivery accord.

In a statement the Minister said this would ensure high productivity, efficiency and professionalism in the public service.

The agreement also includes salary adjustments of 7 percent effective from May this year.

On pay progression, parties also agree to amend the qualifying period for this from 12 to 24 months for new employees in the public service, while recognition of long service will be in the form of increased annual leave entitlement and cash awards.

The Minister said she is relieved that after six months of difficult negotiations parties have finally come to this conclusion.

Government is expected to reveal more details about the agreement later.