Finance Minister Enoch Godongwana has doubled down on his refusal to give in to the demands of disgruntled trade unions for a 10% pay rise in 2022 — a move that will further sour labour relations in the public sector. 

As far as Godongwana is concerned, pay rise negotiations for 2022 have been concluded because the government unilaterally implemented a 3% increase for public servants in October, which was backdated to April. On top of this, SA’s 1.3 million public servants received a monthly R1,000 cash allowance, which will run until March 2023. 

These remuneration benefits will cost the government R693.1-billion to implement in 2022, which is the largest component of the government’s total spending (R2.2-trillion), gobbling up 32% of its budget. 

Trade unions representing public servants have threatened to embark on an indefinite strike if the government doesn’t implement their demand for a 10% pay rise, which is well above the consumer inflation rate that measured at 7.4% in November. But Godongwana is unmoved by the strike threat, saying that the government has settled on its pay rise obligations for 2022. In other words, the government is not willing to reconsider its position when it comes to the remuneration of public servants during the current fiscal year.

Godongwana was speaking to businesspeople and diplomats on Saturday, 17 December at a breakfast hosted by the Progressive Business Forum on the second day of the ANC’s national elective conference at Nasrec, Johannesburg. 

Godongwana has proposed that the government and trade unions resume talks at the Public Service Coordinating Bargaining Council (PSCBC) to negotiate terms for the remuneration of public servants for 2023. “We prefer to start wage negotiations with the unions for next year as soon as possible,” he said. The PSCBC is where the government and trade unions discuss conditions of employment in the public sector.

More anger and disagreements on the way

Godongwana’s stance at the ANC’s national elective conference will probably further anger public sector trade unions, which have argued that negotiations for 2023 cannot begin without the government first addressing their grievances about the pay for 2022. 

The aggrieved unions include the National Education, Health and Allied Workers’ Union; the Police and Prisons Civil Rights Union; the Democratic Nursing Organisation of SA; the South African Policing Union; the Health and Other Services Personnel Trade Union of South Africa; the National Union of Public Service and Allied Workers; and the Public Servants Association of South Africa.

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In a coalition, the unions represent about 800,000 public servants, or 62% of the total public servants in the country (1.3 million). The unions embarked on a one-day strike across the country on 22 November, giving the government seven days to respond to their demands, which include, among other issues, a 10% pay rise for 2022. The alternative would be for trade unions to use their strike certificates, issued by the PSCBC, to embark on a full-blown strike.

Read more in Daily Maverick: “Seven-day deadline: Public sector trade unions warm up for indefinite strike”

Godongwana’s views can be considered as a response to the ultimatum peddled by the unions. 

The dispute over the remuneration of public servants has led to a breakdown in the relationship between the government and trade unions and has thrown its negotiating schedule over pay into a tailspin. 

Trade unions normally start tabling their pay rise demands and other benefits months before the start of the government’s new fiscal year, starting 1 April. Demands are usually tabled no later than May and concluded by September to inform the National Treasury’s budgeting process and give it sufficient time to free up money to fund whatever remuneration deal is agreed on. But by December 2022, the government and trade unions have not started discussions about the remuneration of public servants for 2023. 

“If we negotiate between now and March, we can close that chapter [of remuneration for 2023]. But we are not talking at the moment,” said Godongwana. Whenever the talks happen, they will surely be difficult because Godongwana has not made any provisions for pay increases in 2023. DM/BM