signature of wage offer
5 July 2007
Government welcomes the signing of the 2007 multi term salary agreement. The
settlement comes about after intense, hard and protracted negotiations in the
Public Sector Co-ordinating Bargaining Council (PSCBC) with both sides working
over long hours to find a settlement.
I'm pleased to announce that the majority of the unions have signed (five
out of eight unions) and the agreement is binding on all parties. I'm also
pleased to say that the majority signature has been achieved well in advance of
the 21 days period within which trade unions had to decide whether or not they
support the employer's final offer. This affirms that despite the difficulties
encountered during the negotiations, the collective bargaining process
ultimately triumphed and provides a base from which parties can continue their
engagement in the PSCBC.
The importance and the spirit of collective bargaining is to have a platform
where labour and the employer can engage on issues relating to employment in a
frank manner and where decisions are taken to improve on any of these issues.
What is fundamental to the collective bargaining process is that both the
employer and organised labour are on the side of the workers and this principle
needs to be upheld at all times.
As articulated by the President at the African National Congress (ANC)
Policy Conference, trade unions must be engaged in serious conversation in
order to agree with them about what they and our government should do together
in partnership, to ensure that the democratic state discharges its obligations
to the masses of our people. This is the spirit of collective bargaining!
During the protracted strike, regrettably unlawful behaviour was displayed.
It has been a challenging period indeed. We have seen intimidation and unruly
behaviour, the likes of which has never before occurred during public sector
wage negotiations.
This is unfortunate as it casts a shadow on all of us who work in the public
service. It diminishes the professional status of all public servants. We have
to ensure that in future our negotiations are conducted with respect of the
rights of all public servants and our citizens, the right to engage industrial
action is no more protected than the right to choose to remain at one's post
and the right to life must always take precedence.
It is of particular concern that some of those who have undertaken to
provide essential services abandoned their posts, putting lives at risk. We
must never allow a repeat of such behaviour.
I, on behalf of government, would like to extend a heartfelt appreciation to
the South African military health services and the security services that have
ensured that critical services continued to be delivered throughout the
strike.
To the volunteers who came to the fore and gave of their time and energy to
ensure that services continued to function with minimal disruption, we owe a
special debt of gratitude.
Above all we thank the members of the public who have been patient and
understanding in the face of the inconvenience and disruption caused by the
strike.
The 2007 wage agreement entails the following:
* A 7,5% salary increase across the board, which takes into account average
projected CPIX for 2007/08 plus a real salary increase. A general salary
increase of projected Consumer Price Index (CPIX), plus 1% for the 2008/09
financial year. The general salary increase for those employees who receive
their salaries in the middle of the month will be paid to them by means of a
supplementary payment during the month of July. For employees who are paid at
the end of the month (such as educators), the increase will be reflected on
their July 2007 pay slips.
* The introduction of the occupation specific dispensation, which are
revised salary structures for identified occupations. As agreed between the
employer and the unions, the employer will commence with negotiations in the
sectoral councils on the implementation of these dispensations for nurses,
legally qualified employees and educators. Once agreements have been concluded,
nurses and the legally qualified employees will receive the benefits backdated
to 1 July 2007 and school based educators with effect from 1 January 2008.
* The revision of certain allowances by 25%, i.e. night shift, special and
danger allowances which will be implemented with effect from 1 July 2007.
Thereafter, these amounts will be reviewed annually on the basis of the
projected CPIX as at April of each year.
* Amendments to align the leave provisions/entitlement of the nursing staff
with the rest of the public service will be effected from 1 July 2007.
* The full implementation of the Basic Conditions of Employment Act, in
terms of rewarding 2X salary for work performed on public holidays and 1�X for
work performed on Sunday as part of normal duty will be implemented with effect
from 1 July 2007.
* The increase in the medical subsidy for members of Government Employees
Medical Scheme (GEMS) from a maximum of R1 900 a month to R2 020 a month will
be effected from 1 March 2007. This means that a principal member will receive
a monthly subsidy of R530 plus R530 for the first dependant and R320 for each
subsequent dependant to a maximum amount of R2 020.
* Fast tracking the implementation of the housing allowance to 1 July 2007,
i.e. increase the housing allowance from R242 to R500 per month.
* The translation of employees on salary levels 1 with five years or more
working experience to salary level 2 and those on salary level 2 with 20 years
or more working experience to salary level 3. The departments will identify
those employees on salary levels 1 and 2 who meet the qualifying years of
service on these levels for translation to salary levels 2 and 3 respectively.
It is foreseen that the first batch of qualifying employees will experience the
benefits of the translation on their pay slips as early as August 2007, however
all the benefits will be backdated to 1 July 2007.
* Parties also recognise the need to award the improvement of qualifications
and that the current long service award system be reviewed. Parties therefore
agreed to conduct the necessary investigations to develop proposals for
consideration.
We believe that this comprehensive package will have a profound effect on
the nature of the public service and will provide the opportunity for the
development and improvement of service delivery.
The agreement also deals with the issues of the return to work of employees
who participated in the strike and the application of the deductions in respect
of "no work, no pay."
On the issue of the return to work, parties agreed that employees on strike
would return to work within 24 hours of the settlement of the dispute (i.e. on
reaching an agreement). The majority, if not all of the employees on strike,
have already returned to work due to the fact that the trade unions called off
the strike on 28 June 2007. As part of the settlement, parties agreed that the
employees in the essential services who participated in the strike will also be
allowed to return to duty. They will, however, all receive final written
warnings.
As far as the deduction of "no work, no pay" is concerned, parties also
agreed that deductions in respect of employees who had been on strike for four
days or less, will be made as a lump sum. Deductions in respect of employees
who have been on strike for more than four days will be staggered over a
maximum period of three months.
Government is committed to bringing the public service back to work and
normalise the situation post the strike. Both the Ministers of Health and
Education have started engaging with the relevant trade unions in their sectors
in this regard.
The Department of Education is embarking on a recovery plan for learners who
have been affected by the strike in order to catch up on lost time. Teachers
who are willing to assist in this period will be rewarded through a stipend.
This stipend is not to reimburse the teachers for "no work no pay" principle
that was implemented during the strike, but simply to reward them for assisting
with this recovery plan.
Now it is time for public servants to return to work, to double the effort
in meeting the needs of our people and to strive to live up to the expectation
the citizenry holds of a professional public service.
It would be remiss of me not to thank the government negotiation team for
their role in ensuring the attainment of this agreement. I would also with to
extend this to the negotiators on the side of organised labour.
It is also a time and for us to restore trust and to recognise our shared
commitment to service delivery. Public servants are the custodians of the law,
function within the law and have a particular role in implementing the
constitution. This requires that we serve with pride, with dignity and
responsibility.
Issued by: Ministry of Public Service and Administration
5 July 2007
