FEDUSA accepts government’s 5.5% increase

Public sector unions under the Federation of Unions of South Africa (FEDUSA) have accepted government’s 5.5% increase for their members.

The Public Service Coordinating Bargaining Council (PSCBC) gave the parties 21 days last month, to canvass their members on the final offer from the employer.

The FEDUSA block was joined by the South African Policing Union (SAPU) that has also accepted the 5.5% salary increase. The workers’ demands have been revised several times from an initial 12%, with those that have already signed hopeful their fellow unions will sign too.

It’s been a race against time to conclude the wage talks at the Public Service Coordinating Bargaining Council for public workers ahead of the budget speech by the Finance Minister next week.

PSCBC spokesperson Oomang Parag indicates that some parties have already signed for the 5.5%

“The 21-day period will lapse on the 18th of February and there is a draft agreement that parties will then take to their constituents to the agreement and thus far we have had agreement from SAPU and NAPTOSA. Those are to public service trade unions that have accepted the offer, and those two parties constitute a 17.6%, however, we need to have an additional 32.5% in terms of trade unions to constitute a 50+1 majority for the agreement to be deemed binding,”

The Public Servants Association was one of the first to sign up for the 5.5% wage offer with the union’s Claude Naicker saying what brings their members comfort is an improvement in non-financial benefits.

“It’s a multiterm agreement, meaning that it’s a three-year agreement. But in the first year, a proposed offer 5.5% in the second year, the increases will be coupled to inflation, but on condition if the inflation drops below 4%, employees will at a 4% percent increase and if it escalates above 6%, then employees will get 6%. If the inflation is anywhere between 4 and 6% well that is what the increase will be implemented for the second and third year of the multi-term agreement,” says Naicker.

The public wage bill is one of South Africa’s largest line items on the expenditure side, accounting for roughly one-third of total expenditure. In the October Mid-Term Budget Policy Statement, Finance Minister Enoch Godongwana made provision for a 4.7% increase.

FEDUSA General Secretary Riefdah Ajam says they are looking for a good faith approach to the multi-term agreement, hopeful that government will stick to its end of the bargain.

“NAPTOSA has indeed signed off on the agreement and so too have our larger unions within the chamber and that is NAPTOSA, the PSA as well as HOSPERSA. NAPTOSA within the education labour relations council would have the majority seat then, which ultimately means that our other union in chamber, the SAOU, NACTU as well have signed off and we are pleased to announce that the members have spoken,” says Ajam.

Cosatu is the largest block in the public sector with the federation’s convenor December Mavuso saying they are still consulting and seeking a mandate from their members, ahead of the 21 days deadline.

“This week it’s all about consolidating. What membership has been telling us since interacting with them. We’re looking at over the weekend at a national level to then receive all the reports from provinces and consolidate as different unions and then meet either between Sunday and Monday as leader she goes of the JMC to then share notes from the different unions and then from there who we will know where we stand as individual unions,” says Mavuso.

The 21 days lapse on the 18th of February, a day ahead of the budget speech, with government workers hopeful all parties would have signed for the 5.5% multi-term increase.

Video: Wage Negotiations – Some public sector unions accept govt’s final 5.5% offer