PUBLIC SERVICE SALARY NEGOTIATIONS 2001/2002

Issued by Ministry of Public Service and Administration

16 August 2001

Salary negotiations for the 2001/2002 began on the 5th of June 2001. On the 15th of August 2001 negotiations re-convened at the Public Service Co-ordinating Bargaining Council.

The government as employer tabled a revised package deal covering the following:

The employer agreed to increase the personnel expenditure envelope through the creation of 20 000 jobs in the following sectors: correctional services, health, safety and security and home affairs. The creation of jobs will cost the state R1.6 billionhese jobs will be permanent and sustainable.
The employer agreed to increase the current salary of the public service employees by 5.5%, which will constitute an increase of R4.1 billion.
Further, the 1% of the basic wage bill will be utilised as payment for pay progression this will constitute R700 million with carry through effects.
The introduction of the pay progression will give a further benefit of 0.3% average of the basic wage bill to the individual employee. The 0.3 % will constitute an additional cost of R191 million to the employer;
All employees receive a once-off payment of R850 as part of the settlement for the financial year 2001. This will cost the employer R941 million which constitute an additional 1.5% of the basic wage bill.
A framework will be developed to address the scarce skills flight with a view to ensure retention;
Acting Allowance be paid in the following instances for

funded positions; and
non-funded positions be determined by Executing Authorities
a multi year substantive agreement which aims to stabilise bargaining process and allow focus on the transformation of the public service.

At this stage the state as an employer spends R92 billion on salaries and conditions of employment. Government spending is 27-28% of the GDP and of this 10.3% is used on personnel costs. The new package proposed above is going to cost the state R6.8 billion, which is a percentage increase of 8.93.

The trade union demands a 9% salary increase, 2% for pay progression and an additional R1 billion for promotional posts at levels 1 and 2.

The trade union demands in respect of the above will cost the state R6.8 billion for the salary increase, R1.5 billion for pay progression, and an additional R1 billion for promotional posts at level 1 and 2.

The demands of the trade unions will cost the employer R9.3 billion which is 12.22% increase.

This is clearly unaffordable if compared to the competing service delivery requirements of the public service.

The employer remains committed to a negotiated settlement, however the labour parties have declared a deadlock. This almost closes the possibility for a negotiated settlement. We remain confident that the unions will review their position.

Contact: Tembela Kulu at (012) 314 7213 or 082 497 3220