Wage agreement would plunge state into R37.8 billion in debt

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Senzo Mchunu
Senzo Mchunu


Public Service and Administration Minister Senzo Mchunu and Treasury director-general Dondo Mogajane have reiterated that implementing a wage increase clause in the collective Public Service Coordinating Bargaining Council (PSCBC) agreement of 2018 would not be financially feasible, as the cost of enforcing it would see the fiscus plunged into R37.8 billion worth of debt.

In their responding affidavits to a labour court case filed by the Public Servants Association (PSA), the National Professional Teachers’ Organisation of SA, the Health & Other Services Personnel Trade Union of SA and the SA Democratic Teachers’ Union, Mchunu and Mogajane argued that the court not enforce the collective agreement, saying that fulfilling the agreement as stated in clause 3.3 of the bargaining council would “exceed the compensation envelope approved by Parliament of R37.8 billion”.

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