Govt welcomes public servant wage agreement

Thursday, May 21, 2015

Pretoria - Government has congratulated the negotiation teams who displayed a level of commitment and maturity during the lengthy public sector wage talks.

“I sincerely hope that other sectors of the economy will emulate this good example. Your leadership has proven that working together we can achieve more,” acting Public Service and Administration Minister Nathi Mthethwa said on Wednesday.

On Tuesday night, government and the majority of unions representing public servants reached an agreement regarding wage increases, averting a possible strike.

The agreement, which was inked at the Public Service Co-ordinating Bargaining Council (PSCBC) in Centurion, will see salaries for public servants increase by 7% this year.

This will be followed by increases aligned to the Consumer Price Index (CPI) plus 1 percent in 2016 and 2017.

The unions previously sought a 15% increase, before lowering their demands to 10% during negotiations which started in September.

Under the agreement, government will increase its contribution to employee’s medical aid to 28.5%.

Government has also agreed to increase the housing allowance to R1 200 a month, from R900.

The negotiators also signed an agreement on the review of post retirement; review of danger allowance and agreement on the new danger dispensation.

Of the eight unions, five signed the agreement.

Minister Mthethwa was optimistic the parties that have not yet signed will finalise their mandating processes and join the rest of the unions in the public service who through their actions have helped change the course of history in the field of collective bargaining in the country.

“This is yet another three-year agreement which makes it the third since 2007. This will ensure peace and stability in the public service,” the Minister said.

With the wage negotiations finalised, Minister Mthethwa hoped that the parties will now refocus their attention to the delivery of services. - SAnews.gov.za