THE AVERAGE wage settlement for the period January to June this year was at 8.1% compared with the figure of 9.2% at the end
of June 1998.
Figures released by Andrew Levy and Associates show that the average minimum wage is R1953 compared with R1 884 at the end of June 1998.
Initial union demands ranged from 13.5% to 65% averaging out at about 22.7% - a drop on last year's average of 33%.
Management counter-offers ranged from 0.5% to 9% - averaging 4.75% - a decrease on 1998's average of 6%.
The majority of companies reported that negotiations had taken place in a cordial atmosphere with the minimum disruption.
However, the fact that the average inflation now stands at 8% (at the end May) and the overall level of settlement was at 8,1%, does bring these two key indicators onto a collision course, said researcher Jackie Kelly.
This is likely to set the scene for some unusually hard bargaining in the coming months as the bulk of negotiations get underway during the third quarter of this year. Aligned to this is the fact that a number of wage negotiations were held over as a result of the June election and this may have the effect of increasing the potential for industrial action during this period, she said.
By Anna Cox
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