Pretoria - The South African Chamber of Commerce and Industry (SACCI) has expressed concern at the impasse that has developed in negotiations between labour and the Public Service Commission.
"SACCI is concerned at the impasse that appears to have developed in the negotiations between labour and the Public Service Commission as well as at the ongoing strike in the motor vehicle manufacturing sector," said SACCI on Monday.
It said high demands were being made on employers at a time when business liquidations were still high, indicating that business was still not over the consequences of the global economic meltdown.
Last week, government tabled another offer to unions in efforts to avert a full blown strike by public servants, an offer that would be backdated to 1 July. This after public servants affiliated to Cosatu downed tools on Tuesday and marched to Parliament in Cape Town and the Union Buildings in Pretoria.
Government is offering a housing allowance of R700 and a seven percent salary increase, while unions are demanding an 8.6 percent increase and a housing allowance of R1 000.
"It is SACCI's view that current labour demands are "riding" on earlier successful negotiations with resultant increases that are substantially above inflation. This does not take into account the circumstances of the sector against which the demands are being made. Basing current demands on earlier outcomes sets a precedent that has the potential to undermine the economy.
"Should the Public Service Commission be enticed to agree to an increase that pushes them beyond their budget, additional funding will have to be secured. This will result in a need for higher income to the fiscus and a "knock-on" effect for taxation," noted SACCI.
Public Service and Administration Minister Richard Baloyi has said the increase that the unions were demanding was above what government could afford and it could put strain on service delivery and job creation in the public service.
He said the increments were not sustainable and should rather be understood in the context of government's commitment to find solutions even in difficult times.
The increased salaries were above inflation and would further stretch government's wage bill, which had already been heavily impacted by the settlement of the Occupation Specific Dispensation (OSD), he said.
