22 June 2007
Government and labour have been involved in protracted negotiations in
seeking to reach a wage agreement in the public sector.
In seeking to bring closure to these negotiations and in line with the
indication given to labour in order to settle the current wage dispute,
government has put its signature to a final settlement offer.
In terms of the constitutional provisions of the Public Service
Co-ordinating Bargaining Council, the proposal will stand for 21 working days.
Parties who are not in an immediate position to sign will accordingly have this
period in which to consult and seek a mandate from their membership.
We remain optimistic that we will be able to achieve majority signature for
the agreement.
This offer includes a 7,5% general salary increase, the introduction of the
Occupation Specific Dispensation for identified categories of employees,
increased housing allowance, increased medical assistance, alignment with the
Basic Conditions of Employment Act and increases in the night shift and
standard and special danger allowances.
Government remains steadfast in its belief that this comprehensive offer
addresses the interests of all the public sector unions and the developmental
needs of our nation.
With this offer, employees will see a real increase (over and above
inflation) of 5% over two years (including adjustments on pay progression).
In introducing the Occupation Specific Dispensation, educators, nurses and
legally qualified employees will see a substantial additional adjustment during
the course of this financial year � 2007/2008.
In addition, this proposal includes fast-tracking the implementation of the
increased housing allowance which rises to R500 per month from 1 July 2007.
Recognising the long service of many of those who are employed at the lower
levels of our public service, we are proposing to move those who have worked at
level two for 20 years or more to level three, which will give an effective
increase of 16,5% on their basic salary. Employees on level one with five or
more years' service will move to level two, which will give them an effective
increase of 17,5%.
As government, we remain steadfast in our belief that remuneration must
include the long term benefits for a secure and healthy workforce, such as
retirement benefits and appropriate medical support.
Government is committed to providing remuneration that recognises good
performance, skills, length of service and qualifications. This is in line with
our commitment to retain and attract the best into the public service.
These have been challenging negotiations and we must all ensure that we are
able to learn from this experience in order to take the public service and
service delivery forward to meet the developmental needs of our nation.
Government has listened to the voice of labour and committed to an offer
that will substantially benefit public sector employees. Labour must now show
its commitment and resolve to reach settlement so that we can fulfil our
obligation to delivering services to the people of South Africa.
Enquiries:
Lewis Rabkin
Cell: 082 497 3220
Issued by: Ministry of Public Service and Administration
22 June 2007
