Labour Rejects Employer's Offer
Labour has rejected Employer’s offer in its current form – 15 August 2022
Subsequent to membership consultation in respect of the ‘final’ offer presented by State as Employer as: combination of non-pensionable cash gratuity (R1000) and 2% pensionable salary increase on Cost of Living Adjustment (COLA), NATU and other unions took workers’ mandate back to Council (PSCBC) on 05 August 2022. Collectively, labour vehemently rejected the offer in its current form and directed Employer to go and source additional funding to start talks from at least 3% increase on the baseline.
During the meeting of Council held on Friday, 12 August 2022, Employer indicated that they could only consider sourcing additional funds from the compensation budget. Employer is amenable to adjust the COLA by 1% from 2% to 3% on the baseline provided labour agree to the following cost-cutting measures:
- Only fill critical posts in public service i.e. posts without which services would be hampered or compromised.
- Employee-initiated early retirement without penalties, excluding critical post-holders.
- Employer-initiated retirement mechanism for employees at age cohort 60-64, and;
- Voluntary Severance Package (VSP), subject to assessment of critical skills.
NATU and other unions rejected these cost-containment measures and demanded that Employer table 3% on the baseline unconditionally.
NOTE: Employer’s offer is still 2% on the baseline but could go up to 3% if Labour agree Austerity measures listed above.
CEB is studying this proposal and will be guided by opinion of economists with regards to impact of Austerity measures so as to take informed decision on whether to consider the proposal or not.
Next meeting of Council is scheduled for Thursday, 18 August 2022.
Issued by the Office of the Acting President – Mr S.V. Malinga.