Public sector unions scrambling to sign wage deal as MTBPS draws closer

JOHANNESBURG - Unions representing more than a million public servants are scrambling to pen a wage deal for the next financial year, as the medium-term budget policy statement (MTBPS) draws closer.

Teachers, nurses, and police are among public service workers demanding a 12% pay increase, housing allowances and an annual pension increase.

Government's offer of a 3% wage increase tabled this week is expected to see a tug-of-war play out before negotiations wrap up.
 
The public sector unions have started at a high of 12% but are expected to make some concessions over the negotiation period.

While trade union federation FEDUSA is playing closed cards for now, union federation COSATU is tipped to have a fall-back figure of an 8.5% wage demand.

At this stage, the two federations appear to have general consensus on most demands, except the term of the agreement.

Amid a trust deficit, FEDUSA is negotiating for a single-term agreement while COSATU-affiliated unions have called for a three-year wage deal.

Executive director of teachers union NAPTOSA, Basil Manuel, said that a multi-year agreement would cost government.

"Our view is that you must buy a multi-term agreement by making certain concessions."

Manuel hopes facilitators appointed to oversee talks will help meet the deadline for Treasury’s medium-term budget policy statement.

"The medium-term budget policy statement is, of course, an indicator of what will be in the budget come February next year and the whole issue of salaries and other improvements in conditions of service have to be there."

The medium-term budget statement is set for 30 October.