Cabinet disappointed by rejection of wage offer

Thursday, August 19, 2010

Cape Town - Cabinet has expressed disappointment at the unions' decision to reject the state's latest wage offer, saying while it understood public servants' struggle over low wages, their demands on government was simply not affordable.

Briefing the media on Thursday, following Cabinet's ordinary meeting on Wednesday, government spokesman Themba Maseko said the state had negotiated in good faith in an attempt to meet employees' demands.

"We had to make a choice between increasing the salary bill to unaffordable levels by meeting the union's demands and cutting other urgently needed services.

"It's a choice between improving the wages of state employees and continuing to address the service delivery needs of poor communities and the unemployed," he added.

Maseko noted that government's offer of a 7 percent annual increase and a R700 housing allowance was way above the inflation rate of 4.5 percent.

Unions are demanding an 8.6 percent increase and R1 000 housing allowance.

"While government fully understands and appreciates the plight of all public servants regarding low wages, it has to be mindful of its responsibilities to all South Africans as the final offer already places a huge burden on the fiscus, as the money has to be found in the budget," he said.

Cabinet also acknowledged that the R700 housing allowance "did not necessarily respond adequately to economic realities experienced by our employees" but stressed it was all it could afford at this stage.

"It must be noted that the final offer will have a carry through effect of a further R2.7 billion in the 2011/2012 financial year. The 8.6 percent demand is simply not affordable as every additional cent spent on salaries means less money for other essential services to the public," he added.

Maseko pointed out that increasing personnel expenditure would translate into less money being available for education, learning materials, health care and health facilities, roads, economic infrastructure and other essential services.

Cabinet also spoke out against acts of intimidation and violence by public servants participating in the nation-wide strike, warning that such acts will be dealt with by law.

Maseko warned that those protestors who broke the law could expect no sympathy from law enforcement agencies.

"Cabinet condemns unreservedly the violence, intimidation and the acts bordering on thuggery and criminality that has characterised the strike in parts of the country.

"While the majority of public servants have protested peacefully, the disruption of classes and health facilities is totally unacceptable and will not be tolerated," Maseko said.

While workers had the right to strike, they also had an obligation to society to protest peacefully, respecting the rights of other citizens, he added.

Cabinet also appealed to teacher unions to consider the interests of school children.

"Cabinet is also concerned about the talk of an indefinite strike, especially in the education sector at the expense of our young learners who are just about to sit for the year-end examinations. Government calls for sanity and common sense to prevail," he said.

On the medical front, Maseko said the Defence Force would be on standby to provide assistance in emergency and life threatening situations by providing medical care where it is urgently needed.

Government has given the unions involved in the strike action until today to sign on the current public sector salary increase offer of 7 percent, failing which the offer will be implemented.