HR Pulse

Strike looming at Productivity SA

The South African Parastatal and Tertiary Institution Union (SAPTU), affiliated to the Federation of Unions of South Africa (FEDUSA) has warned that a monumental strike is looming at Productivity South Africa (PSA), the government agency mandated to promote employment growth and productivity in the country.

A deadlock in wage negotiations has consequently resulted in the issuing of the certificate by the Commission for Conciliation, Mediation and Arbitration (CCMA), enabling strike action by SAPTU, signalling a historic move to embark on industrial action for the first time in the entity‘s 45-year existence, said Advocate Ben van Der Walt, SAPTU’s General Secretary.

Productivity SA is established in terms of section 31 of the Employment Services Act, No. 4 of 2014 as a juristic person and an Entity of the Department of Labour (DoL) reporting to the Minister of Labour Milderd Oliphant.

SAPTU says Productivity SA initially offered members a 0% salary increase while SAPTU demanded an 8% increase. SAPTU unanimously rejected the offer made by management and argued that the 0% offer means in effect a cut in salaries and worse conditions while disregarding the increasing cost of living and the rising inflation and that the salary increase should reflect the impact of real inflation on the workers.

In a move that is in stark contrast to its primary mandate, Productivity SA should now prepare for the inevitable, as SAPTU represents the majority of workers at Productivity SA affirmed van de Walt.

It is both insulting and demoralising that Productivity SA an organisation dedicated to the development and enhancement of South Africa’s productivity and employment creation, would subject their very brand ambassadors, SAPTU’s members to a 0% increase, whilst they have to continue promoting productivity linked to enhanced workplace relations and employment creation in the country.

Productivity SA‘s mandate is to promote employment growth and productivity thereby contributing to South Africa’s socio-economic development and competitiveness. The Entity is governed by a tripartite Board consisting of business, labour and government. Productivity SA is therefore a Public Entity vested with the mandate to improve South Africa’s productive capacity and global competitiveness, thus boosting economic growth and employment creation.

Productivity SA discharges its responsibilities through long standing programmes that focus on research, providing information, training, and facilitation, advisory services, auditing and monitoring productivity issues. These programmes engage South African productivity issues at all levels, from the teaching of productivity awareness to school learners through to sophisticated best practices models designed to boost the efficiency of private and public enterprises. Productivity SA has offices in Midrand, Durban and Cape Town.
SAPTU demanded an 8% increase and our increase and our members unanimously rejected the offer made by management and argued that the 0% offer means in effect a cut in salaries and worse conditions while disregarding the increasing cost of living and the rising inflation and that the salary increase should reflect the impact of real inflation on the workers.

Following deliberations at the CCMA, Productivity SA upped its offer to 5%, which fell short of its matching inflation. A deadlock was reached, for which SAPTU cited the following reasons for its demand including:

• The Consumer Price Index (CPI) – Which stood at above 6.3%
• MTEF inflation forecast – Which requires government entities to offer its employee a basic salary increase that matched inflation plus 1%. This means the minimum salary offer according to MTEF should be 7.2%. Most government entity have settled at 7%
• Lack of performance based short term incentive scheme – Productivity SA has no performance based incentive scheme
• Gap closure – Productivity SA employee salaries are not in line with government counterparts

The financial crisis is a contradiction to the address by the Minister of Labour, on the occasion of the budget vote of Labour, Parliament Cape Town (14/05/2017) where she said "The funding model for Productivity South Africa has evolved over many years. I am pleased to report that the current funding model has been revised to the satisfaction of all parties and as such, all the challenges of the past have been resolved".

Whilst the PSA’s proposal unfortunately is completely incognizant of inflationary pressures and the poorer state of disposable income to SAPTU members, due consideration of the full impact of the junk status awarded to South Africa by the ratings agencies recently, will only compound the immense challenges our members will be facing.

A decision to embark on industrial action is always a very tough call, but the only measure at hand to workers resort to during times of bad faith negotiations. However, SAPTU remained open to all discussions aimed at avoiding a strike, a sentiment that has been truly implemented by SAPTU during its 45 – year existence. This coerced, yet avoidable action, will then see the union embarking on its maiden voyage by downing tools and taking to the streets, concluded van der Walt. This is an unprecedented show of as a financial crisis exacerbated by mismanagement as highlighted in relevant audit reports.

The strike action could result in a total shut down of services in Productivity SA’s offices based in Midrand, Durban and Cape Town.