Minister Godongwana declines to predict outcome of public sector wage talks
Finance Minister Enoch Godongwana has declined to make any predictions about the outcome of the public sector wage negotiations.
A fresh round of wage negotiations for the 2023/24 financial year kicked off last week in a special council meeting between officials from the department of public service and Administration and some unions.
In a leaked draft proposal for a three-year wage agreement, the government tabled an offer of 4.7% for the 2023/24 financial year.
Godongwana warned against drawn-out wage disputes when he tabled his budget speech at the Cape Town City Hall on Wednesday.
The proposed salary adjustment for public service workers offers an average pensionable increase of CPI, capped at 6.5% for the 2024/25 financial year.
The same would apply for the following year.
Finance Minister Enoch Godongwana: “This and future wage negotiations must strike a balance between fair pay, fiscal sustainability, and the need for additional staff in frontline services.”
The proposal must receive majority support from unions before it can take effect, with some unions already expected to come in with higher demands.
The minister said that pressure from the public sector could see government resort to alternatives to fund the bloated wage bill.
“An unbudgeted wage settlement will require very significant trade-offs in government spending because the wage bill is a significant cost driver.”
Godongwana said that cost-saving measures would include restricting some government departments from filling vacant posts.
-EWN
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