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The government has gone ahead with a 0.6% reduction in the 7% pay hike deal agreed with public sector unions, although a legal opinion is still awaited on whether this is legitimate.
As a result, both the Cosatu-affiliated unions and the Independent Labour Caucus - which represents about 48% of staff - have walked out of any further talks.
An increased wage of 6.4% across the board is scheduled to be paid on Monday.
According to the unions, government has said that it was “too late to reprogram the system” and that the reduced payment had to go ahead. From a union viewpoint, this amounts to “unilateral implementation” and undermines the whole concept of collective bargaining.
A spokesperson for the Cosatu-affiliated National Education Health and Allied Workers’ Union jumped the gun on Friday morning and announced the breakdown in talks regarding the “clawback” by government. The announcement was scheduled to be made by the combined unions later in the day.
As a result the ILC unions - which include one of the “big five” 230 000-strong PSA (Public Servants Association) - will announce later on Friday that they have also agreed to break off talks.
There is now apparently something of a groundswell of opinion among union members, most of whom were reportedly “not very happy” with the 7% agreement, to push again for 10%.
'Desperate to save money'
Union negotiators argued with disgruntled members that 7% was “a good agreement as it did not totally satisfy either side”. Now, with the union negotiators agreeing that the government has acted in bad faith, members are pushing for a better deal and a clash is inevitable unless there is some remedial move by government.
“The trouble is the employer just seems desperate to save money,” a union negotiator noted.
An Independent Labour Caucus media conference is under way, at which it is expected to be announced that there has been a breakdown with in talks with government.