Cape Town – By Friday, most public sector unions should have received mandates from their members whether to accept or reject the latest – and apparently final – pay and conditions offer from government.
Indications so far are that the offer made on Monday, and which is still based on an estimated 4.8% inflation rate for this year but includes an additional 2.2% will be accepted. Union negotiators are now awaiting a mandate from their members.
The total pay increase therefore comes to 7%, along with an agreement that if the average inflation rate (CPI) is higher than 4.8% – most economists and the unions think it will be – the difference will be added to next years increase. Similarly, pay increases will be reduced should inflation fall below the current estimate.
Despite union demands to negotiate on an annual basis, the offer remains for a three-year deal, with the pay increase for the second and third year set at CPI plus 1%. If accepted, this agreement will, however, exacerbate the wage gap within the public service, something the unions have pledged to close.
In a fairly complex arrangement, the housing allowance has been increased to R1 200 and the rental allowance to R900. The employer medical aid contribution, unchanged for the past three years, will now be “equalised” should the offer be agreed to.
Fin24
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