Public Sector Wage Talks Enter Final Phase, PSA Union the Kingmaker

LOCAL NEWS

• Public sector wage negotiations enter the final phase as govt and unions have until the end of next week to finalise a new wage agreement.
  • 34% of unions were ready to sign the draft that was proposed two weeks ago and tabled for 21 days to allow unions to decide their positions.
  • 15% of the unions are now required to reach the 50% threshold for implementation of the deal. With Nehawu & Popcru having rejected the deal, this makes the PSA union (18%) the kingmaker.
  • SADTU says it is confident a deal will be reached
• Economist warns that "fiscally neutral" options for a basic income grant (BIG) will cause a drag on GDP and employment due to the constrained nature of SA's narrow tax base.
  • Warns that although an income grant sounds noble, it ignores the fiscal reality of the situation and will have detrimental longer-term effects.
  • Recently Barclays warned that the introduction of a BIG would lift debt:GDP to 100%.
• National Assembly Speaker Modise calls for extraordinary extended debate on recent unrest – to be held as soon as Parliament reconvenes in august.
• ANC is also set to meet this weekend over racial violence in the town of Phoenix that has caused a great deal of social discomfort since the unrest