South Africa: Government has 'no choice' but to implement wage offer

"We urge the unions to change their position ... otherwise government will be left with no choice but to implement the offer," said Dumisani Nkwamba, spokesperson for the ministry for public service and administration.

Public-service unions strike in Thokoza
Public-service unions embarked on an indefinite strike on Wednesday after rejecting the government's revised wage offer. The M&G headed to Thokoza where members of the National Health and Allied Workers' Union were protesting outside the Natalspruit Hospital.

He said the department had signed the offer, which would remain on the table for 21 days before the state implemented it, regardless of unions' response.

"The acting director-general for the department of public service and administration, Mr Kenny Govender today [Thursday] signed off the draft wage offer for implementation on behalf of government.

"This has come after drawn out and intense negotiations in the Public Sector Coordinating Bargaining Council (PSCBC).

"The offer, according to the regulations of the PSCBC, will be on the table for a period of 21 days in which labour can make a decision to sign and failing which will be implementable."

Government spokesperson Themba Maseko confirmed that "we are reaching a stage where the offer will be implemented despite the concerns or the happiness by the unions".

He told a post-Cabinet briefing that the state's coffers could not fund a bigger wage hike than the offer of a 7% annual increase and R700 a month housing allowance rejected by unions.

The state's final offer represented a move from the original offer of 5,2% and a R500 a month housing allowance.

"The days of spending money as though it is unlimited are essentially over," Maseko said.

"The offer is already way above the inflation rate of 4,5%. There was a firm commitment on our part to go as far as possible ... if you reach a point where you are already exceeding the inflation rate by such a big number, we think that in fact we are setting a very bad example."

Maseko warned that high wage increases would push up inflation, potentially triggering more job losses and placing a crippling debt burden on future generations. It was also unfair to those who had no work.

"The current wage settlements in the country, both in the public and private sector, are in the long run going to be very negative for the economy," he said.

"We cannot manage the budget in a manner that seems to show a greater bias towards those that are already employed than those that are poor and unemployed."

As the nationwide public-service strike stepped up a gear on Thursday, Maseko expressed the hope that union leaders were "internalising" the offer and would accept it within a few days.

"Even a single day of no public services is too long essentially. We are of the view that after a few days union leaders will realise that in fact government has done what was affordable and possible and after that they will begin to call on their workers to return to their posts."

The government was making arrangements to mitigate the effect of the public-service strike, notably on essential services like healthcare.

"We are putting contingency measures in place. The defence force has been put on alert to provide assistance whenever necessary, especially with regard to medical care," said Maseko.

"Whether it can be able to address all the urgent needs during the strike is still a moot point."

Maseko declined to say when government would start laying off workers if the strike dragged on.

He called for "commonsense" on the part of the trade unions, saying the increased offer was proof that "government was negotiating in good faith in an attempt to meet the demands of our employees".

The final offer would have a carry-through effect of a further R2,7-billion in the 2011/12 financial year.

"The 8,6% demand is simply not affordable as every additional cent spent on salaries means less money for other essential services to the public. It also means we cannot employ more teachers and nurses."

Cabinet acknowledged that the R700 housing allowance amount did not necessarily respond adequately to economic realities experienced by its employees.

Maseko said ministers had also noted there was a need to explore other sustainable approaches to assist workers who could not access housing loans from the banks due to low wages, and to narrow the gap between public- and private-sector salaries.

He said the government was willing to discuss this challenge with the unions after the resolution of the current impasse. At present, it was already taking measures to reduce spending to fund the final offer, which Public Service and Administration Minister Richard Baloyi has said was R5-billion above the R23,5-billion public wage bill provided for in the budget.

The minister's committee on the budget would finalise spending guidelines for the next financial year with a view to regularising austerity measures across the state departments in all spheres, Maseko said. - Sapa