Statement on Cabinet meeting 13 June 2007

13 June 2007

Cabinet held its ordinary meeting in Cape Town this morning.

Cabinet noted the developments regarding the negotiations in the Public
Service Bargaining Chamber and the nature and form of the public sector strike.
The meeting noted that the negotiations were proceeding under the guidance of
the mediators and an agreement should be reached soon.

Government and its negotiators are working around the clock to ensure that a
settlement is reached sooner rather than later. We fully appreciate and welcome
the role of the mediators and we are more than confident that all parties will
fully support them in this difficult task.

We wish to inform the public that the government offer will be going a long
way to improve the overall package paid to public servants. We are concerned
that not enough is being done by union leaders to inform their members of the
details of the overall package being offered, apart from the basic figure for
the basic salary increase.

In addition to the annual increase 6,5%, or 7,25% as proposed by the
mediators, our offer includes increasing the housing allowance; increasing
medical aid contribution; a 25% adjustment to nightshift, special and danger
allowances and full implementation of overtime payment as per the Basic
Conditions of Employment Act. The adjustments will amount, for those who access
the housing allowance and belong to Government Employees Medical Scheme (GEMS),
to an 18% increase for the lowest paid workers and about 9,4 % for the highest
paid employees in the public service. (The 18% and 9% include the annual
increment mentioned at the beginning of this paragraph).

This package recognises seniority, period of service, performance,
qualifications, scope and nature of work. For instance, employees with longer
service will earn higher salaries. In short, the 6,5% is a general increase
which is the minimum that every public servant will receive in addition to
these benefits.

While the details of the Occupation Specific Dispensation will be
negotiated, we envisage for instance, that a professional nurse with the
current starting salary of R79 000 per annum (excluding benefits) will see an
increase to R90 000 and a nurse with excellent performance of five years will
receive an increase of 22%. The starting salary of a teacher with a four-year
qualification will increase from R99 540 to R105 741 (excluding benefits).

The suggestion that the state is intransigent and is not interested in
addressing the plight of employees is based on misinformation and at best
misleading.

The strike has affected mainly schools and hospitals with learners and the
sick being the biggest losers in the situation. Whilst most strikers have
conducted themselves in a dignified manner, Government is extremely
disappointed that some have trampled on the right of learners to learn, the
right of the sick to gain access to urgent medical care and the rights of those
who want to work.

In our view, no amount of anger and frustration can justify the violent
disruption of mid year-examinations, trashing of an operation theatre in a
hospital or preventing a pregnant mother from accessing urgent medical
attention. This situation is totally unacceptable. Government wants to
re-iterate that whilst our Constitution enshrines for the right to strike, the
use of violence and intimidation to force others to join a strike can never be
justified in a democracy, least of all, our democracy that so many of our
people died for. 

This government, and the majority of South Africans, must and will condemn
acts of violence and intimidation and will call on the strikers to demonstrate
their commitment to democratic principles and distance themselves from the
unruly behaviour that has characterised parts of the strike. The irresponsible
utterances of some of the union leaders, which amounted to incitement, is
something that is of great concern to government. Instead of distancing
themselves from the violence and intimidation, they have behaved in a manner
that suggests that they not only condone the unruly behaviour but actively
promote it. We call on all union leaders to refrain from utterances which could
be construed as incitement and to actively work towards creating a culture of
good and responsible behaviour during strike action.

We also wish to clarify the misinformation coming from some quarters
suggesting that political office bearers have received salary increases in
excess of 50% as recommended by the Moseneke Commission. Nothing could be
further from the truth. These recommendations are exactly that and government
has not accepted them. The Presidency is communicating with the chairperson of
the commission and a final decision will be communicated once a decision has
been taken in this regard.

Government will continue to deploy security forces to protect innocent
civilians, those who want to exercise their right not to strike, to protect
private and public property, and we will not hesitate to act against those who
take the law into their own hands. Our police services, supported by army
personnel, are under orders to arrest all those who break the laws. The
principle of no work no pay will apply as per the existing agreements with the
unions. The strike by employees in essential services is illegal and those who
have participated in the strike should not expect any sympathy as this is part
of their conditions of service.

The meeting noted that United Nations (UN) Security Council had adopted
Resolution 1718 (2006) imposing sanctions against the Democratic People's
Republic of Korea and approved the establishment of an Inter-Departmental
Working Group to determine the most appropriate way for South Africa to
implement the provisions of the UN Resolution. The working Group will comprise
of Defence, National Treasury, Provincial and Local Government, Transport,
Intelligence, Safety and Security, Justice and Constitutional Development,
Trade and Industry, Minerals and Energy, Home Affairs, with Foreign Affairs as
convenor.

Cabinet noted South Africa's participation in the International Development
Association (IDA) and the African Development Fund (IDF). The meeting noted the
processes to replenish the fund and related debates on the effectiveness of
aid. The meeting approved a minimum increase of South Africa's contribution to
the IDA by 30% and a minimum of 50% for the ADF.

Meeting noted that South Africa will be hosting the 46th Session of the
Asian African Legal Consultative Organisation (AALCO) from 2 to 6 July 2007 in
Cape Town, and that the African Union Commission will be holding an extra
ordinary session of the Ministers of Industry from 11 to 14 September. A
Ministerial Summit of the Group on Earth Observation to be held in Cape Town
from 27 to 30 November 2007.

Cabinet approved a Policy on the Secondment of Public Service Employees to
multilateral organisations. This policy determines the conditions and the terms
that will guide government in seconding public servants to these bodies. These
public servants will undergo appropriate training prior to their
secondment.

Cabinet approved the proposal for the creation of the Technology Innovation
Agency which will be established by the Department of Science and Technology.
The objectives of the agency will include the building of a bridge between
formal knowledge base and the economy and to stimulate the development of
technology-based services and products; and to stimulate the development of the
technology-based enterprises in the public and private sectors. A bill will be
tabled in Parliament in this regard.

The Protocol on the Policy and Regulatory Framework for the New Partnership
for Africa's Development (Nepad) Information and Communications Technology
Broadband infrastructure network for Eastern and Southern Africa was approved
and will be submitted to Parliament for final ratification. This protocol will,
among other things, seek to harmonise national and regional policies and
regulations, ensure non-discriminatory open access to the terrestrial as well
as the submarine networks, facilitate African ownership and governance of the
network and provide for the creation of the Special purpose vehicle that will
own, develop, operate and maintain the network.

The following Bills were approved:

* Rental Housing Bill
* Social Housing Bill
* National Environment Management Amendment Bill

The following appointments were approved:

* Ms Baby Tyawa was appointed as the Deputy Chief Executive Officer (Deputy
Director-General - DDG) Strategy and Content in Government Communications
(GCIS)
* Mr NS Malebye, DDG Operations in the Department of Public Works
* Mr SP Yawa, Regional Executive Manager in the South African Social Security
Agency (SASSA), Eastern Cape province
* Mr GL Roberts, Regional Executive Manager in the South African Social
Security Agency (SASSA), Free State province
* Mr JG Smalberger, Regional Commissioner (DDG) for the Western Cape
province

Enquiries:
Themba Maseko (Government Spokesperson)
Cell: 083 645 0810

Issued by: Government Communication and Information System
13 June 2007