JOINT MEDIA STATEMENT BY THE COSATU UNIONS AND THE INDEPENDENT LABOUR CAUCUS ON THURSDAY, June 10 2010

SALARY NEGOTIATIONS IN THE PSCBC REACH DEADLOCK

FORMAL DISPUTES DECLARED

COSATU affiliated public service unions and the Independent Labour Caucus, representing 14 unions and approximately 1.3 million employees of the State have declared a dispute as a result of the Employer's intransigence and inability to meet the demands of Labour. The decisions to declare a dispute were taken last night (9 June 2010). The Employer has persistently frustrated bargaining by employing stalling tactics. The latest offer of the State proposes a general increase of 6.5% and an increase in the housing allowance from R500 pm to R620 per month.  The employer is totally out of touch with the reality of the existing conditions in the country.

Workers are struggling to keep up with spiralling increases in municipal rates and taxes caused by the 24,5% of electricity tariff increase. The cost of travelling borne by the workers is too high given the high fuel prices. We regard the offer by the employer as punishment to workers for the recession not caused by them but by greedy multinational corporations.

When negotiations commenced on 16 April 2010 Labour demanded an 11% general salary adjustment as of the first of April, a housing allowance of R1650 per month as well as equal employer subsidy for those members of medical schemes other than GEMS. The housing allowance and the employer subsidy for other medical schemes have not been adjusted in the last five years.

Labour has regularly amended its demands in its endeavour to meet the Employer halfway, and the latest demand on which the employer was requested to obtain a mandate, was an 8.6% general salary adjustment and R1000 monthly housing allowance. However, the Employer reported yesterday (9 June) that it did not have a mandate to continue with bargaining, and that they did not expect to be in a position to continue for at least another week.

It is acutely regrettable that on the eve of World Cup, the negotiations have regressed to such a point that Labour had no other option but to declare a dispute. It needs to be emphasised that Labour did everything in its power to avert this, but the latest developments left us with no other alternative. Such a negative approach by the Employer is definitely not conducive to sound labour relations and the establishment of a positive perception in the eyes of the international world. We sincerely hope that the Employer will come to their senses and adopt a more positive and responsible approach during the process of conciliation, under the guidance of an external conciliator.

The principals and negotiators of Labour have made themselves available on a 24 hours seven day basis in an attempt to reach a reasonable settlement. Hopefully, the Employer will adopt a similar approach.

We refuse to be black-mailed by the employer because of the World Cup 2010 and we shall fight until our demands are met.

We refuse to be black-mailed by the employer because of the World Cup 2010 and we shall fight until our demands are met.

Statement issued by Labour Negotiator and SADTU General Secretary Mugwena Maluleke, June 10 2010

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