SOUTH AFRİCA (Bllomberg) – Unions representing South African civil servants and the government agreed to above-inflation increases for workers, the Public Service Coordinating Bargaining Council, said.
The deal, to be signed on Monday, will see the lowest-paid government workers get an increase of 7 percent and people on the highest salary level will get 6 percent, the council said in an emailed statement late Friday. The pay rise will be backdated from April 1.
The Public Servants Association, which represent about 238,000 workers, said it won’t sign the deal, News24 reported, citing Deputy General Manager Tahir Maepa.
Inflation reached a seven-year low of 3.8 percent in March. While central bank governor Lesetja Kganyago has warned the rate will start rising due to tax increases and high salary demands, inflation will stay close to 5 percent until at least at the end of 2020, according to the regulator. Unions initially demanded a 12 percent increase.