EDITORIAL | Public servants’ unions need to wake up and smell the raises

The government has offered public servants a revised wage increase as threats of a nationwide strike loom. The latest peace offering might just be the best outcome for a tricky situation that could cost SA even more if it takes the wrong turn. 

In February, finance minister Tito Mboweni drew a line in the sand with public service unions during his budget speech, when he insisted on moderate increases for public servants. His tough stance was applauded at the time. Finally, he was aligning wage talks with SA’s fiscal position and prevailing economic conditions. 

Months of deadlocked negotiations followed. Unions were understandably upset, while government negotiators — also understandably — stuck to their guns. Now a new offer is on the table, an offer that might just get the government out of the tight spot it is in. It cannot afford — literally and metaphorically speaking — to steer away from Mboweni’s directions of a moderate increase; neither can it afford a nationwide public servants strike.

At first glance the cash allowance of about R1,000, which results in an effective 11.7% increase for the lowest paid public servants, seems insanely high.

The new offer amounts to a 1.5% salary increase and a monthly cash gratuity. It is the cash gratuity that has not been factored into budget projections, raising questions whether the government can actually afford this. Econometrix chief economist Azar Jammine pointed out that government revenue has increased since the budget was formulated in February, leaving it with some room to manoeuvre. The cash gratuity is also not part of the public servants’ pensionable income.

At first glance the cash allowance of about R1,000, which results in an effective 11.7% increase for the lowest paid public servants, seems insanely high. But this is only for the lowest earners and, as Jammine says, the impact of Covid-19 on the economy has been far more severe on those in lower income groups, so this can be seen as justified.

The government has somewhat come to the party without jeopardising its own financial situation. Yet the public sector unions are still split over the latest round of negotiations. The SA Democratic Teachers’ Union (Sadtu) is the only union that has told its members to accept the offer. “The national executive of Sadtu has said that under these circumstances, it’s not a very good deal. However, the members have suffered a great deal last year without any increase, so the members should accept this increase on the basis that members want money to deal with various issues,” said Sadtu’s Mugwena Maluleke. The National Education, Health and Allied Workers’ Union, the Public Servants' Association and the Police and Prisons Civil Rights Union have vowed to reject it. 

The unions now need to play ball and accept a realistic offer that will see some extra money in their members’ pockets and bring stability to the public sector in dire times. The sky-high cost of living is undeniable, as is the reality of a crippled economy where cash is as scarce as hen’s teeth.