Manuel’s+9%+remark+spices+up+pay+talks,+Musgrave,+Business+Day

Business Day, Johannesburg, 17 May 2007
=Manuel’s 9% remark spices up pay talks=


 * Amy Musgrave, Political Correspondent**

THE government’s chief negotiator has dismissed as speculation comments by Finance Minister Trevor Manuel that the state may raise its 6% wage offer to avert a public sector strike.

Although Manuel’s comments in an interview in Shanghai indicate that the government is prepared to better the 6% offer, he said any increase would be “much” less than 9%.

“The 12% call from the trade unions is way out of line. It’s not something we can do,” Manuel said yesterday.

Asked to respond to Manuel’s comments, chief negotiator Kenny Govender said: “I wouldn’t want to comment. It’s pure speculation on his (Manuel’s part).”

Manuel’s comments could put the government negotiators in a corner as it appears the state has money to increase its offer. His comments come at a sensitive time in the negotiations as the government has approached a number of unions for bilateral talks in an attempt to stop what could be the biggest public sector strike the country has seen.

Hundreds of thousands of public servants will down tools and service delivery across the country will grind to a halt.

Unions aligned to the Congress of South African Trade Unions (Cosatu) are planning to embark on an indefinite strike from May 28. The Cosatu unions, which represent 57% of unionised public servants, have warned they will return to the negotiating table only if the government substantially increases its offer.

Shireen Pardesi, vice-chairwoman of the labour caucus in the public service co-ordinating bargaining council, welcomed Manuel’s comments on a possible increase, but said Cosatu unions had not been told of it. “There has been a request for a bilateral and we are considering it. But chief state negotiator Kenny Govender did not mention any percentages in his letter.”

The Cosatu unions were expected to decide today if they would hold a bilateral meeting with the government.

Meanwhile, unions independent of Cosatu will decide at the end of next week if they will join the strike. Manie de Clercq, who chairs the independent labour caucus in the bargaining council, said if the unions’ members gave the go-ahead, they would embark on an indefinite strike from June 4. The unions were balloting members and the results would be known by May 25.

The independent caucus represents about 40% of unionised public servants.

De Clercq said although the employer had done little to constructively negotiate with labour on its demands, the caucus’s door remained open to reach a settlement to avert a strike. He said the government had also approached the independent unions to hold bilaterals and they were considering it.

De Clercq stressed that the government’s request did not indicate a split in labour. This follows the independent unions denying reports last week that some of them wanted to negotiate with the government separately from Cosatu in order to avoid striking.

Some of them are historically opposed to striking as they represent conservative employees.

“We still deny that there is a split. The fact that the employer approached us does not necessarily indicate that there is a split. The employer may approach anybody in the process of trying to resolve the dispute,” he said.

Should the government put an offer on the table which the unions deemed acceptable, they would first talk to the Cosatu unions and their members before accepting it, De Clercq said.

Govender said he had had some positive feedback from unions and was setting up dates and times for bilaterals.

Earlier this week, the Cosatu unions scoffed at Public Service and Administration Minister Geraldine Fraser-Moleketi’s talk of bilateral wage negotiations, saying it was an attempt by the government to divide the unions. With Bloomberg


 * From: http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A465251**

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