Wage Agreement For Public Servants 2020

14 Apr

April 15, 2020 The National Union of Education, Health and Allied Workers (NEHAWU) has written to the Secretary-General of the Public Service Coordination Council (PSCBC) asking him to urgently schedule the conciliation meeting on the dispute over the non-transposition of the 2018 PSCBC resolution, referred to by the National Union on 1 April 2020, including paragraph 3.3. In a harsh ruling against public sector unions, the court ruled that the increase decided for the third year of the agreement was illegal and rejected the labour application to compel the government to implement it. The dispute followed months of discord between the state and workers, with unions insisting on the need to implement wage increases because they were cemented by an agreement. Public sector unions had called for an order to implement the agreement guaranteeing employees in the sector up to 0.50%. Bruche: #PublicSectorWageBillThe Labour Appeal Court rejected the unions` request to enforce Article 3.3 of the 2018 collective agreement. It found that the clause was illegal. The government does not have to increase the salaries of public servants this year. TM NEHAWU appreciates the Council`s release today of the conciliation date, which has been set for April 28-30, 2020. In addition, we welcome the urgency of the Council`s response to this matter, given the disappointment and anger of our members at not receiving their pay increase on 15 April 2020, as stipulated in the agreement. But public sector unions see the 2018 agreement as a binding agreement and say the government cannot move away from it after the first two years. The government had stated that it could not afford to raise the salaries of government employees because it was fighting the coronavirus pandemic and a struggling economy.

The verdict is a victory for the government and the Department of Finance, which argued that the wage increase would cost the state an additional R$3.2 billion. The payroll is the most important item in the budget and one of the reasons why SA`s creditworthiness was downgraded to the trash by Moody`s and Fitch last month. However, the court found that the clause was illegal and that the government did not have to increase the salaries of government employees this year. READ ALSO: Government calls on unions to support postponing wage increase clean up wage bill. This is one of the main reasons cited by the rating agencies for a further downgrade of its investment ratings two weeks ago… The court considered whether there was “a legal justification for the payment of such a large amount of public funds to a relatively small cohort of the SA population,” he said. The court found that it was a common cause that the state`s finances were “in an even more ridiculous state than before the advent of Covid 19”. One of the main problems in this case was that the National Ministry of Finance had stated from the outset that the agreement was not within the compensation framework provided for and budgeted for that purpose. R10 billion had been budgeted and made available by Parliament in the Division of Revenue Act, but the agreement had exceeded it by R30.2 billion. The unions argued that the fact that the Department of Finance did not approve the funds did not matter, since the Minister of Finance was part of the cabinet that approved the agreement.

The court found that clause 3.3 of the collective agreement signed in 2018 violated the government`s mandatory legal requirements for collective agreements. Public servants` salaries account for about one-third of consolidated public spending and have increased rapidly over the past decade. Unions and the government have not yet begun wage negotiations for the fiscal year that begins in April 2021 and, in light of Tuesday`s ruling, they are likely to be plagued by tensions. (No. 1 – 14,9419 rand) (Reporting by Alexander Winning and Wendell Roelf; The labour court ruled that it would be illegal for trustees