Johannesburg – The South African Federation of Trade Unions (SAFTU) says it was “disappointed” by the public service unions that signed the wage offer by the government.
“Because these unions form a slight majority, the offer is now an agreement, binding to all parties in the Public Service Coordinating Bargaining Council (PSCBC) and enforceable,” lamented SAFTU General Secretary Zwelinzima Vavi.
“The agreement is a multi-term agreement that will give the public service workers what is purported 7,5% wage increase in 2023/24 and an increase ranging between a minimum of 4,5% and 6,5% (depending on the CPI) in 2024/25.
“Buying power severely undermined In our recent statement, we opined that the public service unions must reject the wage offer because it undermines the buying power of the wages of public service workers.
“Though we correctly use inflation as a benchmark for wage increments, in the period of excessive interest rate hikes, such as the one we are passing through, interest rates should be factored into the benchmark.”
Vavi said many of these public services workers were part of a cohort of people that spends 80% of their salaries within five days after being remunerated.
He said they spend 65% of their income servicing credit and as such, in the period of both high inflation and high interest rates.
They have to reduce certain food consumables from their daily food staple as part of reprioritising household expenditure between high debt servicing costs and household essentials.
“This wage increase is not enough to recoup the losses incurred in the past three years,” Vavi said.
“Therefore, the agreement is tantamount to robbing public service workers.”
