PUBLIC SERVICE 2017/18 WAGE NEGOTIATION UPDATE

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1 Introduction This is an update bulletin on the ongoing public service wage negotiations. In our last update to members we indicated that the employer committed to table an offer to our demands in the Special PSCBC Council Meeting to be convened on the 07 December 2017, after their failure to do since the tabling of labour demands. This update bulletin therefore arises out of the Special Council Meeting that was held as reflected above. The employer responded as follows to our demands: Issues Labour Demands Employers Response Term of agreement One-year term The employer did not accept the labour demand of single term agreement and indicated the following regarding the multi term agreement; That the major advantage of the multi-term approach is stability, the opportunity it gives government to grow the economy and sound labour relations between the state as the employer and its employees as the state is afforded the opportunity to implement the policies and collective agreements concluded during the negotiations process. Resolution 3 of 2009 Resolution 3/2009 to be reviewed to inter alia: Reduce the time periods for progression Employer to allow employees to be rated above average performance where such being the case and refrain from rating every employee as an average performer i.e. rate as 3 to as a cost cutting measure. The employer did not accept the labour demands and indicated the following; The review of Resolution 3/2009 should be dealt with in the normal Council processes. 1. Reduction of the time periods for grade progression from 12 years for accelerated grade progression and 15 years for normal grade progression through: (a) The abolishment of accelerated grade progression; (b) The abolishment of clause of Resolution 3 of 2009; and (c) Retaining normal grade progression but reducing the time periods to 12 years commensurate with the 12 notches for salary levels 2 to 12 and 5 notches for salary level 1.

2 Demand the abolishment of salary level 1 3 and entry level in the public service to be salary level 4 coupled with review of Resolution 3 of 2009 The principles of the PMDS should be upheld and protected at all times. Where employees who meet the qualifying criteria are assessed as above average performers such assessment results are maintained. 3. Maintain salary levels 1 3 in the grading system of the Public Service to cater for the elementary occupations in line with the Occupation Classification System (OCS) custom developed for the Public Service as the National system used by the Department of Labour (DoL) and the Codes of Remuneration (CORE s). The unintended consequence of abolishing salary levels 1 3 and introducing salary level 4 as the entry level in the Public Service will result in a domino effect where for example, employee who are currently occupying posts graded on salary level 4 will demand to be bumped-up to salary level 5 and those occupying posts graded on salary level 5 will demand to be bumped-up to salary level 6 etc. General Salary increase Levels 4 7: 12% Levels 8 10: 11% The employer agrees with a sliding scale salary increase but not with the percentage increase, furthermore indicated the following; Levels 11 12: 10% Salary percentage increase: Salary levels 1 10: Projected CPI Salary levels 11 12: Projected CPI minus(-) 1% Housing allowance Demand for the Housing Allowance to be increased to R maintain the increase of the housing allowance be in line with Resolution 7 of 2015 as follows; Clause 4.6 of PSCBC Resolution 7 of 2015 states that: Annually, the basis of adjustment of the housing allowance shall be the average Consumer Price Index (CPI) for the preceding financial year. Such adjustments shall be implemented on 01 July of each year. 01 July 2017 was the first year where the adjustment was effected.

3 Leave Payment of the housing allowance to both spouses who are public servants. will maintain its position of not extending housing allowance to spouses. The savings option in the housing scheme should be made a voluntary option. indicate that it is against the objectives of the Government Employees Housing Scheme and will render the scheme ineffective. Employees should be paid out their savings from the scheme upon resignation from the public service. indicate that the housing allowance is a benefit; therefore, the employee is not contributing any amount to this benefit. In the absence of any employee contribution, the savings amount cannot be paid out from the GEHS upon resignation from the public service. A definition of a PTO must be drawn and circulated to all respective directorates for ease of implementation. The employer accept the demand as follows; PIC must create a housing investment portfolio that will directly invest in the scheme The employer accepted the demand as follows; Capped leave to be paid out to all public servants upon resignation. that the capped leave is not a right, it s a privilege. Family responsibility leave: The age cap of 18 years for children who need to be assisted during their illness, to be removed. indicate as follows; The definition of Permission to Occupy (PTO) will be expanded. This demand is in the current PSCBC Resolution 7 of 2015 paragraph indicated that: Once a collective agreement is signed on this matter, the PIC will be approached to invest in areas which have a direct benefit to employees. Section 1 of the BCEA defines a child as a person under 18 years of age. This section of the BCEA was not varied through a collective agreement of the PSCBC hence this provision applies by default to family responsibility leave when an employee s child is ill. The said definition was included in the

4 definition of child in the Determination and Directive on Leave of Absence. Section 1(1) of the Children s Act, 2005 a child is defined as a person under the age of 18 years. Hence a person at the age of 18 or older than 18 years is deemed to be an adult and able to look after him/herself when sick. Family Responsibility leave to be granted to take care of a sick parent. Additional 3 days. indicated that the demand will result in all employees accessing family responsibility leave in respect of a parent even when they are able to care for themselves or by their spouses / life partners. It is likely that this benefit can be exploited as an extension of annual leave. Maternity leave be granted to male employees under a surrogacy agreement. The employer accept the demand as follows; The adoption and surrogacy leave provision of 45 working days is equivalent to eight weeks. (Approximately 2 months). For costing purposes, the following assumptions were appliedthe same quantum of employees having accessed in 2016 adoption leave (210) and surrogacy leave (8) will access the benefit each year. That the partners/spouses of the above employees are also employed in the public service and will be eligible to parental leave and family responsibility leave (birth of child), i.e. 218 employees. That the extension of the adoption and surrogacy leave benefit should be equivalent to another 45 working days to break even with the four months maternity leave. Temporary Incapacity Leave to be granted by default to employees where the employer fails to comply with the time frame for investigation and feed-back (30 days). Hospitalization further indicate the following; An employee is eligible to 36 working days normal sick leave in a sick leave cycle of 36 months. However, if this normal sick leave is depleted before the end of the 36 months period, then the employee may apply for incapacity leave. In terms of clause of PSCBC Resolutions 7 of 2000, read with 5 of 2001 incapacity leave is granted

5 leave should be approved automatically and not be subjected to the normal approval process. at the discretion of the employer based on an investigation, the extent of inability to perform normal official duties, the degree of inability and the cause thereof. The investigations shall be in accordance with item 10(1) of Schedule 8 in the Labour Relations Act of PILIR was introduced to give effect to this management responsibility. The time frames in PILIR have been designed around the above clauses. By the same token, time frames were introduced for employees in both the Determination and Directive on Leave and PILIR. Employees in most instances fail to comply with the set time frame. An employee must submit his/her sick leave or incapacity leave application within 5 working days from the first day of absence. The submission can be through a relative or friend if not able to do it him/herself. Leave for religious observance (3 days per annum) to be granted to Public Service Act personnel. indicate the following; The Employer is committed to the principles of Sections 9, 15 and 31 of the Constitution of the Republic of South Africa, Labour s demand is not promoting the founding provisions of the Constitution of the Republic of South Africa, Leave for Shop stewards or office bearers Leave taken by a shop steward while initially on vacationleave to be converted to leave for trade union activities. The employer accept the demand. Comprehensive Danger Insurance Demand a single comprehensive danger insurance in the public service in line with PSCBC Resolution 5 of 2015, Clause 3.1 indicate the following; The review as contemplated in terms of clause 3.1 of PSCBC Resolution 5 of 2015 was finalized and a report was forwarded to the PSCBC. The PSCBC has as yet not engaged on the report.

6 Pay Progression Lifting of the moratorium on the filling of vacant posts Outstanding Agreements The addition of identified categories by Sectors. Pay progression to be allowed beyond top notches of salary levels as well as personal salary notches. Equalization of Pay progression for all public servants Demand that the recent moratorium of filling of vacant posts must be immediately lifted. All outstanding agreements to be finalized and implemented during the current financial year. The employer did not accept the demand. The employer accepts the demand in principle to equalized pay progression for all public servants, starting at 1.0 percent (equalised at 1.0 per cent). indicate that moratorium does not exit. indicate that there are no outstanding collective agreements. Time-Table for Negotiations The parties to the following the response of the employer agreed negotiations will commence on the 09 January 2018 and conclude on the 28 February Council will appoint two facilitators to facilitate the negotiations from the beginning. Conclusion We are obviously disappointed by the negative response to many of demands by the employer. In line with our mandating process, we call on the leadership of the union at all levels to widely circulate this report to members and where possible convene membership meetings before the holidays to engage and get a mandate from members on the response of the employer. This is important in order to ready for the negotiation process starting on the 09 January END Issued by NEHAWU Communications Department 56 Marshall Street, Marshall Town P.O. Box 10812, Johannesburg, 2000 Tel: Fax: Tel: info@nehawu.org.za Website:- Add your union as a friend on follow your union on follow your union on facebook instagram twitter