By Staff Reporter
Public sector unions in South Africa have started a new mandate process with their members after the government revised its wage offer to 5%, up from the initial 4.7%.
This follows the medium-term budget policy statement, which earmarked a 4.7% salary increase for public servants.
The first round of 2025 wage negotiations was conducted in a marathon session facilitated by the Commission for Conciliation, Mediation, and Arbitration (CCMA) under the Public Service Co-ordinating Bargaining Council.
The SA Police Union also participated, with discussions focusing on cost-of-living adjustments and multi-term agreements.
Unions are pushing for a three-year deal with salary increases in the outer years tied to inflation.
Housing allowances and danger pay were included in the discussions, but the government has yet to confirm whether the 5% offer is final.
As 2024 concluded, public servants faced uncertainty after months of protracted wage talks, with many expressing dissatisfaction over the government’s position.
The Public Servants Association has highlighted mounting financial pressures, including rising medical aid costs, stressing that any agreement must address the economic strain on workers.
Unions aim to finalize negotiations before the 2025 budget speech, with members set to decide on the 5% offer—a pivotal decision for the future of the talks.
“We believe we’ll be able to close negotiations in the next week,” said Frikkie de Bruin, general secretary of the Public Service Co-ordinating Bargaining Council.
Unions, representing nearly 1.3 million workers, including teachers, nurses, and police officers, are seeking a 6% increase for the 2025–26 financial year—down from the 12% initially demanded in September.
The government, aiming to manage its finances, wants to link pay increases to the consumer price index (CPI) for two years after 2025–26.
However, De Bruin noted, “CPI only covers expenses; it doesn’t uplift workers from poverty. That might be a challenge.”
Despite this, union representatives expressed cautious optimism.
“If we get close to 5.5%, members are more likely to settle,” said Claude Naicker, spokesperson for the Public Servants Association, which represents over 245,000 workers.
The revised offer is significantly above South Africa’s inflation rate, which eased to 2.9% in November but remains higher than the central bank’s 4.5% target for anchoring price expectations.
Wage talks are set to resume on 17 January, ahead of the national budget on 19 February, where Finance Minister Enoch Godongwana is expected to emphasise fiscal restraint amid rising national debt.
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