PERSONNEL COSTS AND THE REVIEW OF CONDITIONS OF SERVICE IN THE PUBLIC SERVICE

Issued by: Ministry for Public Service and Administration

7 July 1999

Over the last five years, there has been an increase in personnel expenditure whilst there has been a gradual decline in non-personnel expenditure. Government is now determined to review personnel costs and redirect the bargaining processes to ensure more sustainable salary increases. This will be achieved through reviewing and negotiating the current conditions of service.

The review will consist of five elements. First, a review of current benefits and allowance and how they are structured relative to wages. Second an investigation of pay progression to replace the current rank and leg promotions.

Third, the restructuring of the pension fund and to make possible greater mobility. Fourth, a review of current bargaining processes to ensure the increased utilisation of a sectoral approach.

And fifth, the narrowing of the wage gap whilst developing strategies to retain professionals and senior managers. This comprehensive review of conditions of service will culminate in a new wage policy for the public service.

We are pleased that public service trade unions have reiterated our common commitment to the transformation of the public service. This encompasses more equitable conditions of service as well as appropriate management of labour relations.