Public sector unions lose court bid to force govt to implement 2020 wage hikes
The Labour Appeal Court has dismissed the application by public sector unions seeking to force government to implement salary increases for this year.
JOHANNESBURG - The Labour Appeal Court has dismissed the application by public sector unions seeking to force government to implement salary increases for this year.
The court has ruled that clause 3.3 in the wage agreement signed in 2018 infringed on the mandatory legal requirements governing the conclusion of wage agreements by government.
Breaking: #PublicSectorWageBillEWN Reporter (@ewnreporter) December 15, 2020
The Labour Appeal Court has dismissed the application by unions seeking an enforcement order of clause 3.3 of the 2018 wage agreement.
It found that the clause is unlawful. Government does not have to hike public servants salaries this year. TM
Public sector unions had sought an enforcement order of the agreement, which guaranteed employees in the sector wage increases of up to CPI plus 0.50%.
The legal dispute followed months of disagreements between the state and workers, as unions insisted that the salary hikes had to be implemented because they were cemented by an agreement.
Government argued that it could not afford this, as it worked on recouping R160 million from the compensation bill in the next three years.
Treasury submitted during court proceedings that it never gave the green light for the wage hikes as required by law.
Unions have indicated they are still studying the judgment.