Labour on unresolved dispute on phasing out of incentive bonus

Compensation Fund (CF) and Unemployment Insurance Fund (UIF)
employees: Ultimatum still stands

26 July 2006

The Department of Labour has asked the chairperson of the General Public
Service Sectoral Bargaining Council (GPSSBC) to investigate the validity of a
certificate, stating that the dispute remains unresolved at the Compensation
and UIF offices.

The request for an investigation was triggered by the fact that after the
second conciliation took place between the Department and unions on 13 July
2006, the matter was postponed to 24 August 2006. But surprisingly, the
Department was slapped with a certificate stating that the dispute remains
unresolved on 14 July 2006, the following day.

Staff members from these offices who are mostly members of the Public
Servants Association (PSA), downed tools three weeks ago over the Department’s
decision to phase out incentive bonus schemes.

This action prompted the Labour Director-General Vanguard Mkosana to issue a
stern warning to strikers regarding unintended consequences should the strike
continue.

“To ensure orderly running of the Department, we have taken a stance that
any employee who participates in an unprotected strike will be dealt with
according to standing prescripts.”

“We implore every staff member to uphold the maximum discipline and where
possible, contribute towards finding a solution to this matter,” he said.

Dr Mkosana said according to the Labour Relations Act [Section 64 (1) (a) or
(b)], the Department would have to invoke appropriate measures as outlined in
the applicable prescripts should the protesters fail to heed the warning.

The bonus system was scrapped three years ago after realising that there was
more paper pushing than the processing of claims. It was decided at a general
staff meeting on 24 February that no South African of a living conscience would
continue to enjoy a bonus for paper pushing while claimants suffer due to
delays in processing their claims,” he said.

Enquiries:
Mokgadi Pela
Cell: 082 808 2168

Issued by: Department of Labour
26 July 2006

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