‘It’s an insult’: Minister hits back after government accused of creating wage ‘monster’

Public Service and Administration Minister Noxolo Kiviet has disputed the suggestion that government has allowed unions to become powerful which, in turn, has resulted in the public sector’s bloated wage bill.

Kiviet was answering questions in Parliament on Wednesday.

‘Created a monster’

South Africa’s public sector wage bill will breach the R700 billion mark in the 2023/2024 financial year, which includes an additional R37.4 billion to fund salary increases.

This is after a 7.5% wage agreement was reached between government and public sector unions at the end of March this year.

On Wednesday, some MPs in the National Assembly made sure to express their concern over the wage agreement.

Freedom Front Plus (FF+) MP Heloïse Denner said she believed compensation of employees in the public sector has been one of government’s “fastest growing expenditure items” in recent years.

“One could say that government has created a monster called the public sector wage bill and that very monster is raring up to bite its master. Those who are going to pay the price are the citizens, especially the taxpayers of this country,” she said.

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Denner told the House that a 7.5% salary hike would become unsustainable for the country’s fiscus.

“What measures, if any, does the department have planned to mitigate possible future industrial action such as public sector wage strikes that we have seen in the past that has turned violent and even led to the loss of lives?” she asked Kiviet.

The minister, however, said Denner’s suggestion of government created a “monster” during salary negotiations was “a bit of an insult”.

“Those salaries are negotiated openly, fairly… in a transparent way and are settled based on what the state can afford at a particular time, looking at a number of factors [such as] the CPI [consumer price index] and all else the improvement of quality of life for [public servants],” Kiviet said.

“Therefore, to come around and say it’s a monster is to create unnecessary animosity [by] pitting the public service against government. I don’t think responsible leaders will handle matters of national importance in that manner.”

Watch the National Assembly plenary below:

Wage strike

Public sector unions went on a nationwide strike earlier this year following collapsed wage negotiations with the government.

The strike turned violent and caused major disruptions at several state-owned health facilities, with patients left unattended and turned away from hospitals and clinics.

The Department of Public Service and Administration had tabled a final offer to workers, comprising a 3.3% salary hike and a 4.2% increase relating to a cash gratuity, both pensionable.

READ MORE: Government’s 7.5% offer ‘a mischievously misleading deal’

The unions, which accused the government of being arrogant, rejected the initial increase offer and instead demanded 10% salary hikes.

At a later stage, however, majority of unions, including South African Democratic Teachers’ Union (Sadtu) and Public Servants Association (PSA), at the Public Service Co-ordinating Bargaining Council (PSCBC) signed accepted government’s 7.5% offer.

The deal was signed in time for the 2023/2024 financial year, which began on 1 April, to kick in.

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