Coffers are still looted, but no pay hikes - worker's union

Unions in the sector want the courts to compel the state honour a three-year wage increase agreement signed in 2018.

Lawyers for the government have argued the effects of the Covid-19 pandemic should be taken into account in respect of what it says is its inability to honor a 2018 wage agreement.

Public sector unions want the Labour Appeal Court to compel the state to implement a Consumer Price Index (CPI) controlled wage increase as per the agreement.

Goverment says it doesn't have the money to do so.

Business journalist Ray Mahlaka unpacks the arguments of both parties on Breakfast with Refilwe Moloto.

Government says the agreement entered into in 2018 is invalid because the circumstances from a public finances perspective have changed and it can longer afford to stick to the agreement.

Ray Mahlaka, Independent business journalist

The unions on the other hand are saying, if the wage agreement is not affordable this year, why comply with it for 2018 and 2019?

Ray Mahlaka, Independent business journalist

They also say if government is losing money to corruption, why can't it stick to the salary increases which are part of a wage agreement.

Ray Mahlaka, Independent business journalist

Listen to the podcast of the full conversation below:

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