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The Department of Public Service and Administration and the Treasury said they could not afford the increases, which were agreed in 2018, and repeatedly claimed that this would cost more than R30 billion.
ARCHIVE: Minister of Administration and Public Service Senzo Mchunu. Image: EWN.
JOHANNESBURG – The unprecedented court battle between the government and public sector unions has started in the Labor Appeal Court where lawyers from the Public Officials Association (PSA) say the government was misleading the parties about cost estimates of this year’s unmet pay increases.
The Department of Public Service and Administration and the Treasury said they could not afford the increases, which were agreed in 2018, and repeatedly claimed that this would cost more than R30 billion.
READ MORE: The government appeals to the unions to support the postponement of the judicial hearing on salary increase
On Tuesday, the government tried to delay the legal process by asking the unions to explore the possibility of reaching an agreement.
The Civil Servants Association has submitted that the salary increases, which are set at just over 5%, will only cost the state 10 billion rand.
The association’s attorney, Chris Orr, said: “It is a matter of some concern that the State has repeatedly relied on one figure to justify many of its arguments in this matter, which is objectively incorrect.”
ALSO READ: Public Sector Unions Avoid Government Request to Waive Salary Increase Court Hearings
The state has argued that it could not afford the wage increases due to pressures to cut spending as the economy continues to decline.
He also said the deal was reached without the necessary approvals of Regulation 79, which includes the need for the Cabinet to give it the green light.
However, the state has complied with the agreement for the past two years.
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