South Africa

Public sector wage showdown

Cosatu strike

South African public sector workers voiced optimism about reaching a pay deal with the government after it improved the offer to 5% from 4.7%.

“In terms of the negotiations, we believe we will be able to close it 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, are seeking a 6% wage increase for the 2025-26 financial year, down from 12% when talks began in September.

To control its finances, the government wants to link public sector pay increases to the consumer price index for the two years after 2025-26, which was a sticking point, De Bruin said in a telephone call on Tuesday.

“There’s a general perception that CPI is only covering your expenses; it’s not uplifting you out of poverty, and that might probably be a little bit of an area that could be a challenge,” said De Bruin.

The revised offer is significantly higher than South Africa’s inflation rate, which moderated to 2.9% in November and is above the central bank’s 4.5% target for anchoring price expectations.

“We’re making steady progress. If the increases are decent enough, we will definitely consider that,” said Claude Naicker, spokesman for the Public Servants Association of South Africa, which represents more than 245,000 workers.

“Members are indicating that if we get close to 5.5%, or we do get 5.5%, they’re more likely to settle at this stage,” he said.

Finalizing a deal will come ahead of the national budget on 19 February, where Finance Minister Enoch Godongwana will want to show the government is keeping a lid on public spending to put a brake on South Africa’s mounting debts.

Wage talks are expected to resume on 17 January.

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