Public servants salary increase

Despite the view that public sector unions would not be able to pull off a strike of any consequence, the events of this week signal just how damaging ...

This is the tightrope the government has chosen to walk and, as it falters, it risks a painful fall. High inflation, as well as the ratcheting up of interest rates, is set to weigh on growth in 2023, making for even more untenable economic conditions. Meanwhile, the cost of living crisis has added strength to calls by civil servants for higher pay. In a February statement, striking unions said the 10% was justified against the realities. However, resources for key services will be reduced overall, according to the PEP’s submission on the 2023 budget. The 2023 budget made steps towards correcting this, allocating an additional R7.8 billion to the police over the next three years to allow for the recruitment and training of 5 000 new officers annually. The government implemented OSDs, which came with a unique revised salary structure, in an effort to stop nurses and teachers from moving overseas or to the private sector. The state, which continues to tighten the screws on the public sector, is also in an awkward position, as it risks the country’s social and economic conditions deteriorating even further. But unions rejected government’s revised offer and, in June 2020, launched an application in the labour court seeking an order to enforce clause 3.3. The sovereign’s ability to claw back its investment grade rating has hinged on the treasury making good on its promise to consolidate spending. Over that same period, the treasury expects headline inflation to average about 5%. Teachers, doctors, nurses and police officers dominate public employment and thus the wage bill.