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South Africa's Public Servants Association Planing to Strike From July 29
South Africa’s Public Servants Association, which represents more than 200,000 government workers, called a strike to start on July 29 after wage talks deadlocked.
Fourteen unions, representing 1.3 million workers including teachers and nurses, are demanding 8.6 percent pay increases and monthly housing allowances of 1,000 rand ($133). The government is offering 6.5 percent and 620 rand allowances.
“The employer has, after numerous meetings aimed at breaking the deadlock, not moved from its insignificant offer,” the Public Servants Association said. “The PSA has already approached its members for a mandate on whether or not they are prepared to embark on indefinite strike action and the majority voted in favor.”
Other unions are balloting their members on whether to join the labor action, with several likely to announce the outcome next week, said Chris Klopper, chairman of the Independent Labor Caucus that groups 10 unions representing about 460,000 workers.
“We will hold informal talks later this week, maybe tomorrow, and if the news is positive, the parties could be called together” to resume formal negotiations, Klopper said in a telephone interview from Pretoria. “At this stage we are extremely cynical.”
Wage Bill
The government, which has seen its wage bill double over the past five fiscal years to 259 billion rand, says it must rein in increases if it is to improve health, education and other services.
Public Service and Administration Minister Richard Baloyi said the union’s decision to call a strike was “regrettable“ and “premature.”
At a meeting held on July 14, the unions agreed to give the government time to “develop a response in the light of the current deadlock,” Baloyi said in an e-mailed statement. The government will formulate “a response by the end of this week to take the solution-finding process forward.”
South Africa’s state-owned power utility, Eskom Holdings Ltd., agreed this month to increase its workers’ pay by 9 percent to avert a strike that threatened to disrupt the soccer World Cup and halt mines. South Africa’s inflation rate was 4.6 percent in May.
To contact the reporter on this story: Mike Cohen in Johannesburg at mcohen21@bloomberg.net.
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