Issued by: Parliament of the Republic of South Africa
TO: CHAIRPERSON - NEHAWU FROM: ACTING SECRETARY TO PARLIAMENT DATE: 21 FEBRUARY 1997
1. INTRODUCTION
In terms of the existing practice at Parliament relating to salary negotiations, hereunder find Parliament's proposals regarding the above. The proposals were formulated in terms of the following principles:
However, the overall determining factor was the budget which allowed an amount representing a 10% growth of the salary bill. Such amount has been set aside for salary adjustments.
2. PROPOSED SALARY ADJUSTMENT
Discussion
The existing wage-gap is 11.66, whilst the salary proposal seeks to further reduce this factor. However, it is important to maintain a fair and reasonable wage gap to act as an incentive to encourage staff development and improvement of skills to allow for upward movement of staff, especially the previously disadvantaged staff.
Existing staff breakdown indicates that there are 545 semi-skilled staff and 275 staff in the technically skilled category. The minimum salary for staff in the first category is the highest in South Africa, given the amount of hours worked and the level of overtime paid. The package paid to staff in this category surpasses any employer of institution country-wide.
However, staff in the second category have been disadvantaged in relation to their counterparts in both the private and public sector, including the Provincial Legislatures. This situation has partly been the result of an active exercise to narrow the wage-gap over the past two years. The minimum wage over this period, for the first category has increased by 107%, whilst salary increases in the second category fell ay below this amount. A further factor was the 1995 salary agreement which resulted in a salary freeze of management's salaries.
Most of the resignations over the past two years have been staff in the second category, and exit interviews indicate that the main reason for leaving was more attractive salaries paid by other employers in both the private and public sector. In this way Parliament has lost numerous skilled staff, especially Black staff in the following areas of work: Hansard Reporting, Translating, Finance, Committees and Legislation and Proceedings. Should their salary position not be remedied, this problem will further increase.
The average salary settlement in South Africa for the current financial year is 9.9%, whilst according to the Central Statistical Services, the rate of inflation for 1996 was 7,4%. The highest minimum salary paid in South Africa is present is R2085,24 per month.
The Department of State Expenditure and the Cabinet have placed tremendous financial constraints on all institutions paying salaries out of State funds. However, despite these constraints, Parliament is able to present a proposal which is extremely beneficial in relation to other employers.
Salary adjustments for Management will be determined by the Presiding Officers, taking into account the above principles. This is so as Management is not part of the bargaining unit and is further not represented by a trade union. In any event, such adjustment shall not exceed the salary percentage adjustment of the highest notch within the bargaining unit. This will ensure that the wage-gap is not widened.
Implementation of these salary proposals amount to an additional expenditure of R4,69m. (Implementation of Nehawu's proposals regarding salaries would amount to an additional expenditure of about R9,2m).
Proposal
That the salary adjustment contained in Addendum "A" be implemented to come into effect on 1 April 1997.
3. PROPOSED HOUSING SUBSIDY
Discussion
Rules/guidelines for a new housing subsidy scheme have been workshopped with Nehawu, and the outcome is proposed to be implemented in the future.
Parliament's subsidy scheme is more extensive that both the public service and the provincial legislature, as these institutions only subsidise to a maximum bond of R70 000. This is significant, as funds are received from a common source.
Implementation of the proposal will amount to an additional expenditure of R473 326. (Implementation of Nehawu's proposals in this regard will amount to an additional expenditure of R3 175 000).
Proposal
That the current subsidy of plus/minus 73% of monthly payment on capital and interest redemption, be increased to 80%, according to the average of the interests rates levied by the following major financial institutions: ABSA, FNB, Nedbank and Standard Bank.
This will amount to an increase from R1 191 to R1 313 on the maximum monthly subsidy payable.
Adjustment of the amount of the subsidy to take effect two months after the adjustment of the interest rates of the above financial institutions on 1 January, 1 April, 1 July and 1 October, annually. Parliament will be advised by the financial institutions of any changes in the interest rates. The non-preferential interest rate will apply.
Furthermore, that the minimum amount of a monthly housing subsidy be equal to the amount of the housing allowance payable to staff.
4. PROPOSED HOUSING ALLOWANCE
Discussion
This form of allowance does not exist in the public service or within the provincial legislatures. It also has minimal application in the public sector. This form of allowance does not require a staff member to own a dwelling, but merely reside in one.
Implementation of this proposal will amount to an additional expenditure of R244 200 (Implementation of Nehawu's proposals in this regard would amount to an additional expenditure of R4 884 000).
Proposal
That the existing allowance of R500 per month be increased by 10% R550
5. PROPOSAL ON ALLOWANCE PAID TO UNIFORMED STAFF
Discussion
The existing allowance for uniformed staff entails R10,00 per month to female uniformed staff for the purchase of stockings, and the issue of 6 pairs of socks to male uniformed staff. The proposal in this regard attempts to standarise the allowance to an amount equal for both male and female uniformed staff.
A concern in this regard is that many uniformed staff, both male and female, do not wear uniforms regularly. A request is made to Nehawu to impress on its members that it is a condition of service, and that staff not wearing the full uniform are misusing the allowance.
The cost of implementing this proposal would amount to an additional expenditure of R41 000. (Nehawu's proposals in this regard will amount to an additional expenditure of R240 000).
Proposal
That all uniformed staff be paid an allowance of R12,50 per month.
6. STAND-IN AND ACTING ALLOWANCE
Discussion
A stand-in allowance is paid to staff members who are requested to temporarily perform the functions and responsibilities attached to a next higher post. Temporary absence from the office by the incumbent of the senior post, result from, inter alia, vacation leave, sick leave, official duties elsewhere, etc.
An acting allowance is paid to a member of staff who is requested to temporarily perform the functions and responsibilities attached to a vacant senior post.
A member of staff who is in terms of his/her job description required to perform duties attached to the next higher post is not entitled to a stand-in allowance.
The implementation of this proposal will amount to an additional amount of R2 800. (Implementation of Nehawu's proposals in this regard will amount to an additional expenditure of R95 000).
Proposal
Stand in allowance
When a staff member is duly instructed to temporarily perform the duties attached to a higher post, such staff member is entitled to the payment of a non-pensionable stand-in allowance. Such stand-in allowance to be calculated in terms of the formula below.
Where a staff member is required to perform stand-in duty during a portion of a working day, the allowance will only be paid after completion of at least 3 hours duty on such day.
Acting allowance
Payment of an acting allowance takes effect from the date on which he/she effectively takes over the responsibilities of the vacant senior post. Such allowance to be paid for the period the staff member occupies the vacant post. Such payment to be effected in terms of the formula below.
Formula
The amount of the stand-in and acting non pensionable allowance is paid according to the following formula:
(A - B) x C 4 X 365 3
Where:
A- the minimum salary notch of the salary scale applicable to the senior post in which the staff member is performing duty. B- the salary notch of the staff member perform duty. C- number of days during which the staff member is performing duty.
7. SHIFT ALLOWANCE
Discussion
The current shift allowance is paid to caretakers on the 19:00 to 07:00 shift. The number of shift workers in this category has been reduced from 10 to 6 on the basis of operational requirements.
This proposal will amount to no additional expenditure. (Implementation of Nehawu's proposals in this regard would amount to an additional expenditure of R83 000).
Proposal
That the allowance for this category of staff be increased from R12,00 per shift to R15,00 per shift.
8. OVERTIME
Discussion
Although overtime remuneration in terms of the existing rules is paid to all staff below section head, the amount of overtime is calculated according to the salary notch of the person concerned, but not exceeding R40 068, in terms of the existing key salary scale.
The cost of implementing this proposal would amount to an estimated additional expenditure of R600 000. (The cost of implementing Nehawu's proposals in this regard will amount to an estimated additional expenditure of R1 700 000).
Proposal
As the rate of overtime is linked to the salary scales, it will automatically increase in relation to the level of salary increases.
That the ceiling of R40 068 be raised by 6 salary notches, i.e. to R48 555 in terms of the current key scale. The tariff for overtime payment is reflected on Addendum "B" (on the existing salary notches).
The key scales is available from Elmien Riley, Tel: (021) 403 3902 (W); (021) 439 6529 (H); Pager: (021) 468 5050 code 16243
9. PAYMENT OF A THIRTEENTH CHEQUE
Discussion
In order to phase in the payment of a thirteenth for payment in the month of December it would amount to an additional expenditure of R900 000 in the current financial budget. This amount must then be recouped in the following financial year. As this amount is not available in the current financial year, it is proposed that this proposal be examined in more detail.
10. PAYMENT OF A TRANSPORT ALLOWANCE AND A SUBSIDY ON AIR TICKETS
Discussion
Except in the transport and tourism industries where air tickets are provided to employees in the management echelon, these benefits are not provided to employees in the private or public sector in this country, as well as any other country in the world.
The cost of implementing Nehawu's proposal in this regard will amount to an additional expenditure of R7 100 00 (made up as follows: R4 926 000 for transport allowance and R2 177 000 for subsidised air tickets).
This proposal cannot be acceded to.
11. MEAL SUBSIDY
Discussion
The prices of food produced at Parliament are determined by the market costs of the ingredients. The last increase in food prices was during 1994. The food price is subsidised in order to reduce the cost paid by Members and staff.
The shortfall in turnover has become so large that in order to cover the cost of the food ingredients, one of two options are available; either cut the operational costs, which includes the cost of labour, or adjust the price of food. The latter was chosen.
12. ENCASHMENT OF LEAVE
Discussion
Since 1993 staff at Parliament were allowed to encash up to two thirds of their vacation leave allocation. In the last financial year this practice amounted to an expenditure of R616 000. From a social/work/health point of view it is essential that staff take adequate vacation leave. Failure to do so often result in increased stress, bad health, deteriorating family relationships, poor work performance, etc. The Employee Assistance Officer at Parliament regularly deals with such cases.
The continuation of this system should therefore form the subject of discussions between Nehawu and Management.
PROPOSAL OVERTIME RATES
NOTCH NORMAL RATE SUNDAY RATE 24474 15.65 23.47 25152 16.08 24.12 25944 16.59 24.88 26730 17.09 25.63 27510 17.59 26.38 28284 18.08 27.12 29010 18.54 27.82 29814 19.06 28.59 30903 19.76 29.63 31986 20.45 30.67 33057 21.13 31.70 34122 21.81 32.72 35178 22.49 33.73 36225 23.16 34.74 37701 24.10 36.15 39168 25.04 37.56 40068 25.61 38.42 41511 26.54 39.81 42945 27.45 41.18 44364 28.36 42.54 45774 29.26 43.89 47169 30.15 45.23 48555 - and higher 31.04 46.56
SUMMARY OF NEHAWU'S PROPOSALS - 1997/1998
1. Salary increase Existing salary minimum (monthly): R2 039.50 pm Proposed minimum: R2 753.33 Range of increase: 1.54% at higher level - 35% at lower level Additional cost of salary proposal 1997/98: R9.16 million
2. Housing subsidy
- Increase of bond ceiling from existing R100 000 to R150 000 - Increase of subsidy from existing approximately 73% to 80% - Amount of subsidy to be deducted from salary before calculation of tax.
3. Housing allowance
- Increase of existing allowance of R500 per month R1 500 per month - At least half of the amount to be deducted from salary before calculation of tax. Additional cost of proposal 1997/98 : R4.85 million
4. Meal subsidies
- That the price of 1997/98 be pegged down for the 1997/98 financial year. Additional cost of proposal 1997/98 : R1,0 million
5. Uniformed staff
- An additional allowance of R50 per month be paid for laundry, stockings, socks, etc Additional cost of proposal 1997/98 : R0,24 million
6. Stand-in/Relief allowance
- A flat rate of R30 per hour and/or R200 per day to be paid for such duties Additional cost of proposal 1997/98 : R0.095 million
7. Shift allowance
- Increase of existing allowances of R12 per shift to R50 per shift Additional cost of proposal 1997/98 : R0.083 million
8. Overtime
- A Flat rate of R50 per hour during normal time and R100 per hour at Sunday rate Additional cost of proposal 1997/98 : R1.7 million
9. Transport allowance
- R500 per month per worker (excluding those who qualify for the current vehicle scheme for Senior Officials) - A subsidy to the amount of 80% of one return flight per employee and immediate dependents per year to any destination in the RSA Cost of proposal 1997/98 : R7.1 million
10. Thirteen cheque
- The existing practice of paying annual bonuses in the month of the birthday of the employee be stopped and instead be paid annually on 15 December. Phasing in of proposal in 1997/98 : R0.9 million
11. Salary scales
- That the current practice of salary legs be abolished until such time as mutually accepted job evaluation - and performance appraisal systems are in operation, especially for those on the current scale R24 474 up to and including R44 364 Additional cost of proposal 1997/98 : Marginal expenditure