Govt urges unions to accept offer

Monday, August 23, 2010

Pretoria - Government has appealed to public sector unions to sign its settlement offer without delay, saying the offer is close to what public servants are demanding.

Public servants embarked on industrial action last week after months of negotiations. They are demanding an 8.6 percent wage increase and a R1000 housing allowance. Schools and clinics have been crippled by the strike.

At a media briefing on Monday, Government spokesman Themba Maseko explained that government's settlement offer to public servants amounted to 8.5 percent - only 0.1 percent less than what unions have asked for.

"The settlement offer is 7 percent annual increase and a R700 a month housing allowance. This settlement offer was in addition to a 1.5 percent pay progression. In real terms, the state's offer to the unions amounts to 8.5 percent and means that the real difference between the state and the unions at this point in time is 0.1 percent," Maseko said.

The 1.5 percent pay progression, which is applicable to salary grades one to 10 which makes up 90 percent of public servants, was initially supposed to performance based but has now been added to the wage offer.

This, Maseko said, was an indication of government's commitment to improving the conditions of service of state employees.

Government's settlement offer will cost an additional R5 billion. "This is an amount government will have to work very hard to find," Maseko said, adding that government was still open to further talks with unions to identify and address any outstanding issues.