Public servants reject 4.8% offer

2011-03-28 14:21

The Public Servants Association (PSA) today announced that it had rejected an offer of a 4.8% salary hike for all public servants.

The PSA is demanding a 10% salary increase, a R1 650 housing allowance and that all employees receive the same medical aid allowance irrespective of which medical aid they belonged to.

PSA deputy general manager Manie de Clercq said that the state had made no offer for the housing allowance or medical aid question.

He said government had offered 4.8% for the current year and also wanted labour to sign a five-year agreement that would tie their annual wage increases to annual inflation rate estimates.

“The offer does not meet even half of labour’s demands. The employer, in response to labour’s demand for a single-term agreement, tabled a multiterm salary agreement covering five years up to 2016 with a salary increase of only projected CPI [inflation] in each of these years,” he said.

De Clercq said the unions would prefer to negotiate annual wage increases every year.

“A long-outstanding demand by labour is that the employer’s contribution to medical aid schemes be equal for all employees. The employer has, however, placed it on record that labour’s demand is unaffordable and indicated that employees who want a higher medical aid subsidy should join Gems, the government’s preferred medical aid scheme,” said De Clercq.

He said public sector workers who belong to Gems receive an employers’ contribution of up to R2 500, while government workers on other schemes receive a maximum of R1 014 per month.

He said labour’s demand for a R1 650 housing allowance across the board had been met with an offer of an “RDP housing scheme” for employees in the lower income bands while a new housing scheme for other employees would only be introduced in 2013.

“This is in conflict with the 2010 wage agreement which stated that a new home ownership scheme will be implemented for all public servants on 1 April 2011,” said De Clercq.

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