13 June 2007
Following the impasse in the public sector wage negotiations last week,
labour requested that mediators be appointed. Following their appointment, the
mediators met with both parties, both separately and jointly over the past
weekend and developed a proposal in an attempt to take the matter towards
resolution.
In presenting their proposal, the mediators indicated that if their proposal
were to take the matter forward, it would not be entirely to the liking of
either party, and would hence required both parties to move from their
positions.
Government considered the proposal with great seriousness, recognising the
importance of reaching resolution.
The proposal imposes a serious burden on the employer in that it requires
extending the total package and committing funds beyond those in the Medium
Term Expenditure Framework (MTEF).
Recognising that we are thirteen days into industrial action, and further
recognising the toll that this is taking on all sectors of society, we as
government felt it incumbent upon us to accede to the proposal.
We have accordingly accepted the mediators' proposals, which consist of the
following:
* A general salary increase of 7,25% for the 2007/08 financial year, which
takes into account average projected CPIX for 2007/08 plus a real salary
increase
* A general salary increase of projected CPIX plus 1% for the 2008/09 financial
year
* The implementation of revised salary structures (occupation specific
dispensation) for the following professions in this financial year:
- All categories of nurses with effect from 1 July 2007
- Legally qualified professionals in Justice with effect from 1 July 2007
- School based educators and school principals with effect from 01 January 2008
and 01 July 2007 respectively.
* Fast-tracking the implementation of the housing allowance to 1 July 2007,
i.e. increase the housing allowance from R242 to R456 per month
* A 25% adjustment to night shift, special and danger allowances
* The full implementation of the Basic Conditions of Employment Act, where
government will pay 2x salary for work performed on public holidays and 1 and a
half x salary for work performed on Sunday as part of normal duty
* A medical subsidy increase from R1 900 to R2 020 for GEMS members.
Labour has, in effect, rejected the proposal, certain areas of agreement
notwithstanding, and has reiterated its earlier substantive demands.
The proposal of the mediators substantially increases the employer offer.
The employer is willing to support this proposal and calls on labour to do
likewise in the interests of all parties, but above all in the interests of the
people of South Africa whom we have undertaken to serve.
Contact: Lewis Rabkin
Cell: 082 497 3220
Issued by: Ministery for Public Service and Administration
13 June 2007
