UPDATE REPORT ON THE SARS WAGE NEGOTIATIONS 2016

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1 UPDATE REPORT ON THE WAGE NEGOTIATIONS IN SOUTH AFRICAN REVENUE SERVICES This report is an update to members on the wage negotiations between SARS and for 2016/17 financial year. Members will be aware that the three year agreement signed with SARS as the employer is coming to an end on the 31 st March Therefore the new agreement to be signed during this round of negotiations will replace the old one. The negotiations commenced on the 29 January The negotiations continued on the 2 nd, 3 rd and 4 th March Below is the update to date based on the demands and offer made by the employer: SARS WAGE NEGOTIATIONS UPDATE REPORT Items Demands A. Items still under Negotiations Employer Status of item Family Responsibility leave Study leave 10 days family responsibility with extension to other extended family members Carry over unused 2 days family responsibility per year 5 days family responsibility leave for employees who have children with severe special needs, diagnosed with terminal illness and where there is need for specialised treatment. 5 days study leave per module will submit the list/specifics to be included in the definition of who will qualify as the extended family within the next two days revised their demand from 10 to 7 days. is prepared to remove this demand from the list subject to a discussion on the criteria for discretionary leave Otganised wants to remove the Employer is willing to consider the additional list of extended family members which is not covered in the existing policy. Employer does not support any carryover of leave days. Employer clarified that the main purpose of discretionary leave is to allow for any eventuality or special circumstances not covered under our existing leave provisions. Employer will explore to develop guidelines. This will be covered under discretionary leave. Employer maintains that the current study leave provisions

2 Sick leave General Salary Increase Term of Agreement Unutilised sick leave in a sick leave cycle to be carried forward to the next sick leave cycle. The union is demanding a 14% across the board. The union is l demanding a single term agreement Long Service R500 increase per category of years of service PMDS Policy Review of policy (bonus to be paid to all employees who scored above 60% as per required standard of acceptable performance standard capped 20 days but it should be 5 days per module maintained the demand. That 75% of unutilised sick leave must be carried over. revised their demand to 12% salary increase is still demanding a single term agreement maintained that the long service award still lower compared to public service and they did not move on their demand Oragnised still require the employer to review the policy which should form part of the collective agreement. are adequate. Employer indicated that they have extended sick leave as such their position will remain. The employer is committing to relooking into the ESL Policy to accommodate the concern raised by the demand. Management moved their offer to 5% based on the current economic status. Employer maintained that they want a multi-term agreement, at least 3 year agreement. Employer maintained their position that their offer is far better than public service and indicated that the agreement will provide detail of their offering. Employer is not acceding to the demand but is willing to engage on the review of the policy. Pay Progression Automatic pay progression within job grade pay band categories of 2% every two years, and if satisfactory performance levels have been maintained in preceding performance years. the two put a motion to bring the item back for negotiations and requested employer that should provide the draft indicated. as Employer does not agree with the demand from Employer is willing to look at the principles of the interims salary adjustments. The matter will be Parties initially agreed to defer the item to the. Agreement on the principle of addressing salary anomalies. Matter at. Items Demand from OL B. Agreement Reached Employer Status of item Employment Equity Act Equal pay for work of equal value The Employer committed to continue to adhere to the provisions the EE Act and Regulations

3 Paternity leave 10 days Paternity leave per child agreed to employers offer for 5 days per incident Employer said that 5 days is sufficient and in line with the basic condition of employment. They conceded that they can consider including 5 days per incident but not increasing to 10. Items Demand from C. Parties agreed to defer the items to where the Task Team must be established Employer Status of item Field worker allowance The employer s new proposed policy to deal with field workers allowance to be a collective agreement. Where an employee is in receipt of the field worker allowance and the employer takes any form of action causing an employee to disqualify such an employee to continue to receive the allowance, such FWA allowance be incorporated into the total remuneration package of the employees, applied retrospectively, and to the quantum at the time of forfeiture. Parking Full Subsidising of parking for all employees where the employer is unable to provide safe parking for an employee in and around the designated workplace. Recruitment and Selection Union to be provided observer status. Matters to be but it should be a collective agreement. agreed that the item can be the indicated that the absent of in the recruitment process has resulted in recruitment process being observed accordingly. not They indicate that they will not oppose if the matter is deferred. to Employer requested that this item be excluded from the wage demands as there is process underway to address this matter at the. Similar to FWA, labour must allow the existing process to be finalised in the. Employer agreed with labour but seek further clarity on the meaning of this demand. ; the item will be the. ; item to be ; item to be deferred broader discussion. to for

4 Child Care Facility Provision of Child Care facility to cater primarily for employees and extended to clients children Demand to be but the time frame must be concluded on the implementation principles. They proposed 6 months Implementation date 1 January maintain their demand for implementation date to be 1 January. However they proposed that a task team be formed to look at the implementation pros and cons within 6months. Housing Salary Structuring The employer must commit to assist employee to be able to purchase a home, using of a state guarantee Review of salary structure from TCT to base wage. 1. Medical Aid The union is demanding a medical aid increase of R1000 requested that the state guarantee should include second time buyer and those who are married in community of property. confirmed that the item be removed to the criteria should be discussed by the task team. Independent specialist to be appointed. No discussion took place on this demand The Employer wants to put this as part of Health and Wellness strategy. They want to explore reengineering the workplace to ensure that the working environment is conducive for this demand. Employer agreed that they will work within the time frame and matter to be. The implementation date will not change due to other related processes. Employer proposed that maybe the leave days can be sold and paid in January to assist employees with financial constrains in relations to increases in January. Employer proposed that reconsider this demand as the financial year cannot be changed as the increase is aligned to the state financial year and align with budgeting processes. Employer will implement the state guarantee in line with state guidelines. The criteria of the guideline will be deliberated by the task team. Management will retain the Guaranteed Total Package model and would be positioning a proposal to address the issue of pensionable salary Employer accepted proposal and indicated that the team must meet. Part of a guaranteed remuneration package and annual % increase ; item to be Referred to the task team for providing state housing guarantee to employees in line with state guidelines. The criteria will be discussed by an task team finalise this matter within 6 months.

5 2. Housing The union is demanding that housing allowance be increase to R3300. Danger Allowance The introduction of danger allowance of R1500 to identify categories e.g. Customs and Branch Operations, etc. Medical Aid Freedom to belong to medical aid of choice, as the current restriction to three medical aids discriminates against employees who do not belong to a spouse s medical aid where a freedom of choice applies. No discussion took place on this demand Deferred the matter to a task team to do a research of what is the implication and challenges of having the danger allowance. The timeframe must be clearly outlined. proposed that Momentum and Fedsure health being an additional medical aid scheme for employees. They are open to include Gems as the 6 th medical scheme once they are ready to engage with SARS. propose an independent broker to assist the task team. Part of a guaranteed remuneration package and annual % increase Group life was introduced to address this demand. Employer agreed to the proposal for a task team to be formulated and period of 6 months proposed to address the demand. Employer indicated that the risk of opening up (increase) the number of medical schemes is huge. After review their demand, employer is willing to look at their proposal and to formulate a task team to look at the possibility of expanding the number of medical scheme. Employer emphasised that the existing medical broker will be tasked to look at the risk and benefits of this proposal. finalise this matter within 6 months. finalise this matter within 6 months. Agreement ; task team to be formulated. task team to consider this demand. Grading Increase entry level to 3B maintained that the entry job in the organisation should be paid at grade 3B level. Management agreed to evaluate the functions of these employees and implement the outcome. The salaries of these employees would not be negatively impacted. The parties accepts that the matter will be referred to a the the matter must be concluded within 6 months

6 We are now at the crictical stage of the negotiations as we move towards the end of March We therefore encourage members to attend their workplace meetings convened by shopstewards to discuss the wayfoward. The membership will be followed by the provincial shopstewards meeting to be convened as follows to consolidate revised mandates. PROVINCE DATE OF MEETING Gauteng Provincial bargaining Forum 15 th March 2016 Mpumalanga Provincial Bargaining Forum 15 th March 2016 Limpopo Provincial Bargaining Forum 16 th March 2016 Free State Provincial Bargaining Forum 16 th March 2016 Eastern Cape provincial Bargaining Forum 17 th March 2016 Northern Cape Provincial Bargaining Forum 17 th March 2016 KZN Provincial Bargaining Forum 18 th March 2016 North West Provincial Bargaining Forum 18 th March 2016 For further clarity, please contact the National Co-ordinator, Comrade Sibusiso Valashiya on or National Organiser, Comrade Vusi Mabizela on End Issued by NEHAWU Communications Department 56 Marshall Street, Marshall Town P.O. Box 10812, Johannesburg, 2000 Tel: Fax: Tel: Website:- Add your union as a friend on facebook follow your union on instagram follow your union on twitter

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