Issued by: Office of the Premier
2 July 2000
On May 15, 2000 government commenced negotiations with unions in the Public Service Co-ordinating Bargaining Council.
The negotiations centred on a number of issues including salary increase, conditions of employment, micro-lending, skills and service delivery audit and other policy issues.
Despite the fact that negotiations were conducted in a positive spirit, talks broke down on Friday June 30, when the unions indicated their intention to declare a dispute.
The initial salary adjustment tabled by the employer was five percent across the board. Our current commitment to improve the wage bill amounts to R4,3b which translates to six percent across the board including benefits. The current employee benefits are not equitable, affordable and not accessible by all. The restructuring of the employee benefits will result in a equitable and accessible benefits for all.
However, the parties reached broad agreement on the restructuring of Medical Aid; Pensions; HIV/Aids policy and housing.
We have agreed to establish joint task teams to pursue discussions on these issues.
As the government we believe that de-linking the employers contribution from medical inflation and linking it instead to average salary adjustments would ensure that more public servants enjoy medical aid benefits.
We are also convinced that it is important to ensure that the housing benefit is accessible to lower levels of employees and employees in the rural areas.
The parties have agreed to look at the restructuring of leave provisions. Accumulated leave will have to be utilised and will not be paid as top up for retirement.
We have also agreed that there is a need to overhaul the present system of rank and leg promotions and notch increases and replace it with a system that is linked to performance and competency.
Other issues relate to the review of the present exit management framework and variations by agreement on the Basic Conditions of Employment Act.
Details of some of these proposals will be worked out at sectoral level.
We want to reiterate our commitment to end non-statutory deductions because this adds to pressures for increased disposable income of public service employees.
Negotiations are by nature very complex and require flexibility and patience from all involved. We remain committed to a negotiated settlement.
Issued by Department of Public Service and Administration Transvaal House, Corner Vermeulen and Pretoria Streets, Pretoria
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