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2017 PSCBC RESOLUTIONS AGREEMENT ON THE AMENDMENT/IMPROVEMENT OF CERTAIN EXISTING PENSION BENEFITS AND CREATION OF NEW BENEFITS AGREEMENT ON THRESHOLDS AND PROCEDURES FOR THE GRANTING OF ORGANISATIONAL RIGHTS WITHIN THE PUBLIC SERVICE NEGOTIATION PROTOCOL AGREEMENT: WAGE NEGOTIATIONS PROCESS
RESOLUTION 1 OF 2017
RESOLUTION 1 OF 2017 AGREEMENT ON THE AMENDMENT/IMPROVEMENT OF CERTAIN EXISTING PENSION BENEFITS AND CREATION OF NEW BENEFITS 1. OBJECTIVE The objective of this agreement is to give effect to the proposed amendments/improvement on certain existing pension benefits and to create new benefits; 2. SCOPE 2.1 This agreement binds the employer and all employees who: 2.1.1 are employed by the State 2.1.2 fall within the registered scope of the Council
RESOLUTION 1 OF 2017 3. NOTING THAT 3.1 Section 29 of the GEP Law refers to negotiations regarding the terms and conditions of employment and section 29(1)(a) of the GEP Law states as follows: (1) (a) Subject to the provisions relating to negotiations regarding the terms and conditions of employment contained in any law applying in respect of labour relations arrangements in the Public Service 3.2 Amendments to the pensions benefits as contained in Resolution 12 of 2002 can only be effected by entering into a resolution. 3.3 Amendments/improvement of existing benefits and creation of new benefits contained in this resolution do not require additional contributions from members of the fund and the employer.
RESOLUTION 1 OF 2017 4. AGREEMENT Parties hereby resolve to amend the benefits of the members of the Government Employees Pensions Fund (GEPF), in accordance with Section 29 of the GEP Law as follows: 4.1 Increase in the Funeral Benefits 4.1.1 The GEPF will amend its Rules in order to give effect to the following funeral benefit increases: a) From R 7 500 to R 15 000 for a member, pensioner and spouse b) From R 3 000 to R 6 000 for eligible children and stillborn 4.1.2 The Board of Trustees of the GEPF will review funeral benefit levels every 2 years
RESOLUTION 1 OF 2017 4.2.1 The GEPF will amend its Rules in order to give effect to the following changes in the orphan s pension a) The orphan s pension will be renamed to child pension. b) The child pension will be payable to all children of the member upon his/her death regardless of whether or not there is a surviving spouse and/or that the spouse is providing financial support. c) The benefit will be paid until age 22, irrespective of whether the child is in full-time study. d) The level of the child pension will be increased to a maximum of 25% per child from the current 10% level, but reduced proportionately if there are more than four children (where a spouse s pension is not payable), or more than two children (where a spouse s pension is payable).
RESOLUTION 1 OF 2017 e) The minimum pension per child, where there are a large number of children, will be kept at 10% per child in order to avoid reducing benefits below the orphan s pension. 4.3 Establishing an Additional Voluntary Contribution Scheme 4.3.1 The GEPF will amend its Rules in order to give effect to an Additional Voluntary Contribution Scheme that allows members an option to increase their retirement provision while in active employment, as well as to allow those members who have 36 months or more fixed term contracts and who are currently not members of the GEPF the option to make provision for retirement.
RESOLUTION 1 OF 2017 4.4 Establishing a preservation vehicle 4.4.1 The GEPF will amend its Rules in order to give effect to a preservation vehicle that allows members an option to preserve their pension proceeds within the GEPF upon exit. Such a preservation vehicle will enable members of the public sector who use the facility to benefit from economies of scale in respect of administration and investment management costs, since the costs of preserving in a commercial preservation fund may be high
RESOLUTION 1 OF 2017 4.5 Review of the reduction factors in favour of an increased Spouse s Pension 4.5.1 In terms of the current Rule 14.2.2 of the GEP Law, when a member of the GEPF retires he or she can elect to forfeit 13% of his or her gratuity or 3.5% of his or her annuity, in exchange for a spouse s pension that is 75% of his or her pension on death rather than the fixed 50%. This uniform sacrifice leads to cross-subsidisation as it does not depend on the individual member s profile such as the age and the gender of the member as well as the actual age and gender of the spouse, amongst others.
RESOLUTION 1 OF 2017 4.5.2 The GEPF will amend its Rules so as to minimise cross-subsidisation by ensuring that the sacrifice is based on the profile of the individual member, i.e. on gender, member s and spouse s age, amongst others.
RESOLUTION 1 OF 2017 4.6 Amending the application of the Clean-Break Principle from the debt approach to the service adjustment approach 4.6.1 The clean-break principle allows for the spouse to claim a portion of the member s interest in the Fund, in terms of a valid divorce order. 4.6.2 The GEPF will amend the GEP Law and its Rules in doing away with the concepts of debt and interest in the apportionment of pension benefits on divorce and instead by adjusting the member s service, following payment of the divorce settlement by the Fund.
RESOLUTION 1 OF 2017 4.7 Discharge Benefit Anomaly 4.7.1 The improvement of the resignation benefit in 2012 from the return of member s contribution to actuarial interest gave rise to an anomaly between the discharge benefit and the resignation benefit for those members who have less than 10 years of service. A member who is discharged with less than 10 years of service will receive a lower benefit than if the same member resigns voluntarily. This is an anomaly from a principle perspective. 4.7.2 The GEPF will amend its Rules so as to rectify the anomaly between discharge benefit and resignation benefit for a member with less than 10 years of service so that the discharge benefit is consistent and not less than the resignation benefit.
RESOLUTION 1 OF 2017 4.8 Market Value Adjustment 4.8.1 The application of the market value adjustment gives rise to an anomaly in that the benefit of a member who transfers to another retirement may be lower than the benefit payable if the same member was to resign and opt to cash. This anomaly goes against the principle of retirement funding. 4.8.2 The GEPF will amend its Rules so that the market value adjustment will not be applied to all transfers out of the Fund, other than cases where the transfer of members is so substantial that it results in more than a 0.25% drop in the Minimum Funding Level or where the Minimum Funding Level is less than 95%. In such cases, the Fund will notify the Employer of the financial impact of such a transfer.
RESOLUTION 1 OF 2017 5. DISPUTE RESOLUTION If there is a dispute about the interpretation or application of this agreement any party may refer the matter to the Council for resolution in terms of the dispute resolution procedure of the Council. 6. IMPLEMENTATION OF AGREEMENT 6.1 This agreement shall come into effect after the GEPF Rules have been amended and gazetted. 6.2 The agreement will remain in force unless terminated or amended by agreement 6.3 The Council will monitor the implementation of this agreement.
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RESOLUTION 2 OF 2017
RESOLUTION 2 OF 2017 AGREEMENT ON THRESHOLDS AND PROCEDURES FOR THE GRANTING OF ORGANISATIONAL RIGHTS WITHIN THE PUBLIC SERVICE 1. OBJECTIVE 1.1. The objective of this agreement is to: 1.1.1 establish an agreed threshold of representativeness that registered trade unions must meet, as contemplated in section 18 of the LRA, to exercise organisational rights in the public service; and 1.1.2 establish a uniform and fair process to verify the membership of registered trade unions seeking organisational rights and the granting of organisational rights to trade unions who meet the agreed threshold of representativeness as contemplated in this agreement.
RESOLUTION 2 OF 2017 2. SCOPE 2.1 This agreement binds the employer and the employees of the employer who: 2.1.1 are employed by the State, and 2.1.2 fall within the registered scope of the Council 2.2 This agreement shall not prevent the conclusion of collective agreements in the sector councils that regulate how organisational rights, as contemplated in sections 12, 13,14 and 15 of the LRA, are to be exercised by trade unions who are granted organisational rights in the relevant workplace within the public service, as contemplated in section 20 of the LRA.
RESOLUTION 2 OF 2017 For the avoidance of doubt, this agreement is not intended to regulate how organisational rights are to be exercised by trade unions and the Council recommends that the sector councils conclude organisational rights agreements to regulate such matters in each of its sectors, respectively.
RESOLUTION 2 OF 2017 3. NOTING 3.1 Council acknowledges the right to freedom of association; 3.2 Council discourages trade union proliferation at the workplace; 3.3 Council encourages practices of voluntarism, majoritarianism and selfdetermination; 3.4 Council promotes and seeks to achieve orderly centralised collective bargaining in the public service, and the effective resolution of disputes; and
RESOLUTION 2 OF 2017 3.5 Council strives to promote labour peace and stability by setting uniform rules, norms and standards for the granting of organisational rights, across the public service, so as to: 3.5.1 facilitate an application by a registered trade union seeking organisational rights; 3.5.2 facilitate and co-ordinate the granting of organisational rights to registered and/or admitted trade unions who meet the agreed threshold of representativeness as contemplated in this agreement; 3.5.3 ensure uniformity in the granting of organisational rights across the public service and within the sector councils.
RESOLUTION 2 OF 2017 4. WORKPLACE 4.1 For the purposes of this agreement, a workplace shall be as defined in paragraph (a)(ii) of the definition of a workplace in section 213 of the LRA.
RESOLUTION 2 OF 2017 5. THRESHOLD OF REPRESENTATIVENESS 5.1 The Council, in terms of its Constitution, establishes a threshold that registered trade unions in the public service must meet to be admitted as parties to the Council ( the Admission Threshold ). The Admission Threshold may be varied by the Council in its sole discretion and in accordance with its Constitution from time to time. 5.2 Trade unions who are admitted as parties to the Council as at the date on which this agreement becomes effective, are granted the organisational rights in sections 12, 13, 14 and 15 of the LRA in the relevant workplace. The rights of such admitted trade unions shall not be affected by the coming into effect of this agreement and such trade unions shall continue to exercise all of the organisational rights which they enjoyed prior to the coming into effect of this agreement.
RESOLUTION 2 OF 2017 5.3 The threshold of representativeness as contemplated in section 18 of the LRA for trade unions who are not admitted as parties to the Council as at the date on which this agreement becomes effective, but who seek to be granted organisational rights in the relevant workplace, shall be 75% of the Admission Threshold as determined in the Constitution of the Council from time to time. Trade unions who meet this threshold of representativeness shall be granted the organisational rights in sections 12, 13 and 15 of the LRA. In respect of trade unions who seek to be admitted as parties to the Council after the date on which this agreement becomes effective, the following shall apply:
RESOLUTION 2 OF 2017 5.3.1 A trade union who is admitted as a party to the Council and meets the Admission Threshold shall be granted the organisational rights in sections 12, 13, 14 and 15 of the LRA in the relevant workplace. 5.3.2 Trade unions who are admitted as parties to the Council as a result of them acting jointly but who do not, in their own right as a single trade union, meet the Admission Threshold of the Council, shall be granted the organisational rights in sections 12, 13 and 15 of the LRA in the relevant workplace.
RESOLUTION 2 OF 2017 5.4 Trade unions who are not admitted as parties to the Council but who jointly meet 75% of the Admission Threshold, shall be granted the organisational rights in sections 12, 13 and 15 of the LRA in the relevant workplace.
RESOLUTION 2 OF 2017 6. PROCEDURE TO OBTAIN ORGANISATIONAL RIGHTS 6.1 Where a registered trade union seeks to be granted organisational rights, it must serve on the employer a notice requesting to exercise one or more of the organisational rights conferred by the LRA in a workplace within the public service. The notice must comply with the provisions of section 21(2) of the LRA. 6.2 The parties to this agreement agree that in order to achieve consistency in the granting of organisational rights, the Council shall be required to consider the notice and make a recommendation to the employer about whether the trade union meets the minimum requirements of this agreement, read with the LRA, for the granting of organisational rights to it. Accordingly, the employer shall forward the notice together with all annexures, to the Council immediately once it has received it.
RESOLUTION 2 OF 2017 6.3 In considering the notice, the Council will verify the membership of the trade union in any manner it deems practicable. The Council may, for verification purposes, request a trade union seeking organisational rights to verify its representativeness within the relevant workplace in the public service by submitting audited membership figures. 6.4 The Council must, within a reasonable time of receiving the notice contemplated in clause 6.1 above, inform the employer about whether the applying trade union complies with the minimum requirements of this agreement, read with the LRA, for the granting of one or more organisational rights to it, and give its recommendation to the employer.
RESOLUTION 2 OF 2017 6.5 The Council may provide reasons in writing to the employer for its recommendation. 6.6 For the avoidance of doubt: 6.6.1 the Council may only make a recommendation to the employer but the employer will make the final decision whether or not to grant one or more organisational rights to the trade union, provided that the trade union complies with the minimum requirements of this agreement, read with the LRA; 6.6.2 an employer may not grant organisational rights to a trade union who does not meet the minimum requirements of this agreement, read with the LRA; and 6.6.3 any organisational rights granted to a trade union in breach of the provisions of this agreement, read with the LRA, shall be null and void and remedial action must immediately be taken by the employer.
RESOLUTION 2 OF 2017 6.7 The employer will inform the applicant trade union of the Council s recommendation within 30 Days of the date on which the Council confirms its recommendation to the employer in writing.
RESOLUTION 2 OF 2017 7. DEFINITIONS In this agreement, unless the context otherwise indicates: day means a working day. registered trade union means a union in possession of a lawful registration certificate duly issued in terms of the LRA. admitted trade union means a trade union admitted to the Council as a party complying with the provisions for admission as set out in the Constitution of the Council. the Council means the Public Service Coordinating Bargaining Council (PSCBC). the LRA means the Labour Relations Act, 66 of 1995, as amended from time to time.
RESOLUTION 2 OF 2017 sector council means the Education Labour Relations Council (ELRC), General Public Service Sectoral Bargaining Council (GPSSBC), Public Health and Social Development Sectoral Bargaining Council (PHSDSBC) and Safety and Security Sectoral Bargaining Council (SSSBC). For the avoidance of doubt, any term and / or concept not defined in this agreement, or where the context does not otherwise provide sufficient clarity, assumes the meaning defined in the LRA.
RESOLUTION 2 OF 2017 8. DISPUTE RESOLUTION If there is a dispute about the interpretation or application of this agreement any party may refer the matter to the Council for resolution in terms of the dispute resolution procedure of the Council.
RESOLUTION 2 OF 2017 9. IMPLEMENTATION OF AGREEMENT 9.1 This agreement shall come into effect on the date it enjoys majority support and shall remain in force unless terminated or amended by agreement in writing. 9.2 The Council will with the implementation of this agreement do an assessment of the current organisational rights awarded and align those to this agreement. Where necessary, sector councils may be advised to align sector agreements with this agreement. 9.3 The Council will monitor the implementation of this agreement.
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RESOLUTION 3 OF 2017
RESOLUTION 3 OF 2017 NEGOTIATION PROTOCOL AGREEMENT: WAGE NEGOTIATIONS PROCESS 1. NOTING 1.1. Parties having evaluated the 2015 wage negotiations, committed to approaching the ensuing wage negotiations with a joint solution seeking (JSS) approach in that: a) Parties will spend significant time analysing and understanding issues before seeking solutions; b) Parties will evaluate all possible solutions by assessing them against the identified needs and interests; c) Only after such assessment will the parties seek to select between possible alternatives, rejecting those found not to be suitable and choosing preferred solutions to any particular issue.
RESOLUTION 3 OF 2017 1.2 Parties commit to embark on a structured, step by step process to identify and effectively deal with factors aggravating the conflict in the negotiations including those issues recorded on the wage negotiations evaluation report. 2. PURPOSE The purpose of this Negotiation Protocol is to: a) Set out parties joint commitment to conduct effective interest based negotiations; b) Set out parties joint commitment to certain shared objectives; and c) Establish a process framework and timetable for each identified cycle of negotiations
RESOLUTION 3 OF 2017 3. PRE-NEGOTIATION PROCESS 3.1 Exchange of Information: Parties agree that all relevant information relating to economic Indicators that becomes available from time to time will be shared. 3.1.1 Any other information from reputable organisations will also be shared. 3.2 Facilitated bargaining meetings: (a) The bargaining preparatory meeting will be held at a suitable venue, (b) The appointed facilitator(s) will conduct a process to assist parties to identify and share each other s needs, interests, and concerns relating to the negotiations.
RESOLUTION 3 OF 2017 3.2.1 The objectives and desired outcome of the facilitated bargaining process will include: a) To afford parties/individuals the opportunity to prepare adequately; b) To create a realistic bargaining range; c) To set the mood/ambiance for the negotiations; d) Explore and stabilize divergence of opinions within some teams. Building relationships; e) To explore creatively, yet analytically all possible options/solutions; f) To encourage a proper mandating procedure;
RESOLUTION 3 OF 2017 g) To expedite the negotiation process; h) Clarify and decide on issues; i) Determine the agenda of the negotiation process; and j) Agree to a timetable. 3.2.2 Parties may agree during the preparatory meeting to conduct research on certain identified issues, or to meet further before the commencement of negotiations to discuss issues or positions that have emerged.
RESOLUTION 3 OF 2017 4. NEGOTIATION STAGE: 4.1 The parties will agree at the conclusion of the facilitated pre-bargaining meeting whether to use a facilitator(s) from the start of the negotiation stage. 4.2 If/when a facilitator(s) is appointed, the facilitator after consultation with the parties will determine, from time to time and as the negotiations progress, in what order to deal with the items on the bargaining agenda, when to hold joint and side meetings, when to hold plenary or smaller working group meetings, and generally, to facilitate an effective joint problem solving interest based negotiations. At an appropriate stage in the negotiations, the facilitator(s) must use a single text procedure to capture areas of agreement and disagreement in a single document, which will be used as the basis for drafting the final agreement.
RESOLUTION 3 OF 2017 The facilitator will manage the negotiation process and the timetable with a view to meeting all reasonable timeframes for negotiations as contemplated in this protocol agreement. 4.3 If a facilitator(s) is not appointed, the parties will commence negotiation in a joint meeting, and commit to further meetings, including smaller working group meetings where necessary and in so doing commit to follow a joint solution seeking process.
RESOLUTION 3 OF 2017 5. DISPUTE RESOLUTION The parties agree that any dispute regarding the interpretation and application of this protocol will be resolved in terms of the dispute resolution procedure of Council.
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