Mugwena Maluleke, the chief negotiator for Cosatu’s public sector unions, says the absence of a response from the government on the existing wage agreement means it is still in effect, according to Business Maverick.
The public sector wage increase agreements took effect on 1 April and the first tranche of increases is to be paid on 15 April.
‘The government has acknowledged receipt of our letters for clarity on their decision about the wage agreement. They are either supposed to say, yes they are implementing the agreement, or no, they are not implementing it, so that we know what steps we have to take,’ Maluleke said.
The government is still bound by a 2018 agreement with 1.2 million public sector workers to pay them inflation-beating salary increases for three years from 2018 to 2020.
The government had until Wednesday this week to either renege on the wage agreement or fulfil it.
In terms of the 2018 agreement, general and support staff would be paid increases of the projected consumer price index (CPI or inflation) plus 1%. Higher-income categories – mainly assistant directors up to directors-general – would rise by projected CPI plus 0.5%.
Finance Minister Tito Mboweni indicated that he wanted to review the agreement in order to cut the public sector wage bill of R639 billion for the 2020/2021 financial year.
If the cuts are not achieved, the National Treasury expects the fiscal deficit to increase by a percentage point from the current 6.8%.
Public Service and Administration Minister spokesperson Vukani Mbhele declined to comment, saying: ‘We are not in a position to talk about the issue.’ Mbhele referred to Public service and administration minister Senzo Mchunu’s 31 March statement that the government was committed to implementing wage increases on 1 April.