Public Service and Administration on wage negotiations

Statement on wage negotiations

15 June 2007

Government welcomes the ongoing engagement with Labour on the wage
negotiations and is optimistic that a settlement will soon be reached.

Concerns have been raised about employees having their pay withheld on
today's salary payment.

We wish to assure employees that - other than the no work, no pay rule being
applied – no instruction has been given for salaries to be withheld.

Yesterday, as part of the mediation process, the employer submitted a
proposal in an attempt to settle the current dispute.

This proposal includes:
1. a general salary increase of 7.25% for the 2007/08 financial year
2. a general salary increase of projected CPIX plus 1% for the 2008/09
financial year
3. 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 (teachers and principals) with effect from 1 January
2008
* office based educators and educator specialists with effect from 1 April
2008
* medical doctors, dentists and dental specialists, pharmacists and emergency
medical services from 1 July 2008
* Correctional officials from 1 July 2008
* medical support services from 1 July 2009
* engineers, architects, environmentalists and other identified professionals
jointly agreed to in the relevant sector with effect from 1 July 2009.
4. fast-tracking the implementation of the housing allowance to 1 July 2007,
increase the housing allowance from R242 to R456 per month
5. a 25% adjustment to night shift, special and danger allowances
6. the full implementation of the Basic Conditions of Employment Act, where
government will pay 2x salary for work performed on Public Holiday and 1 and a
half x salary for work performed on Sunday as part of normal duty
7. increase in the medial aid subsidy for employees on Government Employees
Medical Scheme from a current maximum of R1 900 to a new maximum of R2 020.

Government's current offer has as a total package increased very
significantly over its original offer, in response to the demands of
labour.

The Occupation Specific Dispensation (OSD) will significantly enhance the
remuneration and career prospects of educators, health professionals, legal
professionals and the other categories mentioned above. We will be able to
recognise good performance, qualifications and length of service in a way that
rewards the worth of these professionals appropriately.

We anticipate that with the special packages which we are proposing - the
OSD - teachers, subject to negotiation in the sector bargaining council, who
are currently at starting level, with a four year qualification, will see their
basic salary going from the current salary of R99 540 to R114 423, when the OSD
comes into effect on 1 January next year. This excludes the considerable
benefits to which public servants are entitled – pension, medical aid and
housing.

In the meantime, if the 7.25% increase is accepted, they will in the interim
move to R106 757 for the current half year. The increase to R114 423 represents
a percentage increase of on salary alone of 14.95%.

A teacher with 10 years service is anticipated to move from a current basic
salary, with the OSD from R109 962 to R126 067 (benefits excluded).

A principal on level 10 with five years experience is anticipated with the
OSD to go from R191 742 to R219 904 (benefits excluded).

Nurses, with the OSD, are anticipated to get salary increases starting 1
July 2007. A professional nurse with a four year qualification, four years
experience on the 5th notch of level six (as an example) is anticipated to go
from a basic salary of R78 477 to R125 942. The total package (which includes
service bonus, pay progression, pension, housing allowance and subsidy for
Government Employees Medical Aid) will go from the current R121 708 to R183 781
- a 51% increase on total package.

These new salary scales indicate government’s commitment to attracting and
retaining skills in the identified occupations. We are committed to ensuring
that those who have a vocation to serve in these fields are properly rewarded.
The Public Service must become the employer of choice for the finest talents
that this country produces.

We urge all public servants to engage with the detail of the offer through
their unions and are confident that agreement will soon be reached.

Enquiries:
Lebohang Mafokosi
Cell: 082 312 4641

Issued by: Department for the Public Service and Administration
15 June 2007

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