Massive budget shortfalls caused by unfunded multi-year wage agreement

Western Cape Education MEC, David Maynier. Picture: Tracey Adams / IOL News

Western Cape Education MEC, David Maynier. Picture: Tracey Adams / IOL News

Published Sep 10, 2024

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by David Maynier

The September 9, 2024, article in the Cape Argus regarding the reduction in teaching posts contains a claim by Khalid Sayed that the unfunded, nationally negotiated 2023 public sector wage agreement is not applicable for the 2024/25 financial year (Pressure mounts to save teacher jobs in the Western Cape).

It appears that Sayed has tied himself in a knot by forgetting that the 2023 agreement is a multi-year agreement, which covers both the 2023/24 wage increase, and the 2024/25 wage increase.

It was announced as unbudgeted by the National Treasury in March 2023, and confirmed as not fully funded in the Mid Term Budget in November 2023.

In announcing the multi-year wage agreement, the National Treasury stated the following:

“An unbudgeted wage settlement will require very significant trade-offs in government spending because the wage bill is a significant cost driver. It will mean that funds must be clawed back in other ways.

“Mainly, this will mean restricting the ability of departments and entities to fill non-critical posts. It will also mean achieving cost-savings from major rationalisation of state entities and programmes.”

During the MTBPS, the national government announced that it would not be paying for this agreement in full, despite national government negotiating it with the unions. Our department received only 64% of the increase cost, leaving us with a R3.8 billion shortfall over three years.

The Western Cape, and indeed all other provinces, have confirmed that the massive shortfalls we are facing are a direct result of the decision by the national government to not fully fund the 2023 multi-year wage agreement.

This is why it urge opposition parties to fight alongside us, rather than against us, for the teachers of the Western Cape.

* David Maynier, Western Cape Education MEC.

** The views expressed here are not necessarily those of Independent Media

Cape Argus

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