Formal salary and benefits negotiations for 2000/2001 commenced in the Public Service Co-ordinating Bargaining Council (PSCBC) on 15 May 2000. Both the employer and union representatives agreed to a continual two weeks negotiations period and also expressed their commitment to conclude the negotiations within 30 days.

1. Government’s Inclusive Package

The government as employer has offered and tabled at the PSCBC an all inclusive package of five (5%) across the board which was subsequently increased to six percent (6%) which translate to 4.3 billion rands. The six (6%) is government’s final offer. The offer includes the following:

1.1 Pay Progression

The current system of rank and leg promotions and notch increases needs to be discontinued because it is:

• not affordable
• not equitable and
• not linked to performance.

A new pay progression system, which links performance and competency to pay, will be introduced. The details of the proposed new pay progression system will be developed at the Sectoral Bargaining Councils.

In the interim a once-off non-pensionable bonus of R400 will be paid to all employees. Backlogs on rank and leg and notch increases will be addressed over an agreed period of time.

1.2 Basic Conditions of Employment Act (BCEA)

Government is committed and complies with most of the provisions of the BCEA, in some instances we are even above the minimum requirements. However, government cannot afford to comply to the Sunday work and over time provisions as stimulated in the BCEA.

Government has therefore lodged an application for an exemption from the Sunday work and overtime provisions of the BCEA with the Minister of Labour.

Union representatives have been advised that the application may be set aside jointly if they are willing to negotiate on the issue of Sunday work and overtime.

1.3 Leave

The accumulated leave system currently being used in the Public Service has been open to abuse. Poor recording systems of leave days resulted in the failure to validate accumulated leave by public servants. To avoid further abuse of leave provision, a new leave provision system in terms of the Basic Conditions of Employment Act (BCEA) has been proposed. This system will re-align the current leave provisions with the BCEA and to ensure that leave in the Public Service becomes a RIGHT and not a privilege.

This new system will commence on 1 January 2001and will include:

• Annual leave:

21 working days (minimum). (Excluding Saturdays & Sundays. If Saturdays & Sundays are included the 21 working days will translate into 30 days)

• Sick leave:

36 calendar days over a 3-year cycle with full pay. A disability management leave system is also proposed. This disability leave system will be separate from the normal sick leave provision and will be specifically used for terminal illnesses such as chronic heart conditions, accidents disability etc. This provision is still subject to further negotiation.

• Family responsibility leave:

three (3) working days paid leave per annum.

• Maternity leave:

four (4) months of which 84 days will be paid leave.

• Different methods to manage accumulated leave are also being explored.

Note: NO public servant will loose his/her accumulated leave.

The new system will only attempt to:

• restrict future leave accumulation and
• the cashing out of leave days by public servants.

An agreed "phase out" period of accumulated leave will be negotiated in the PSCBC.

• Other forms of leave will not be affected.
• The Education Sector will develop its own leave dispensation.

1.4 Benefits

The restructuring of employee benefits must be viewed in context of the government’s transformation agenda. Currently, housing and medical benefits to public servants are not:

• equitable; and
• accessible to all employees, especially those in the rural areas

1.4.1 Housing benefit:

The employees' actuarial interest in the Government Employee Pension Fund (GEPF) will be used as collateral for accessing housing loans. This will assist those who currently do not have access to financial institutions.

A joint task team (both government and union representatives) will be established to facilitate an in-depth investigation on public service housing benefits.

1.4.2 Medical Assistance:

Currently, there are more than 70 different medical aid service providers within the public service. Government contribution to medical aid assistance is based on medical inflation. Due to this large number of service providers and the link of medical benefits to inflation, medical benefits become unaffordable to government.

Through its collective purchasing power, government can negotiate with medical aid administrators and service provider’s better and affordable medical aid services for public servants. The employer contribution increase will be based on the average salary adjustment and be de-linked from medical inflation. The rationale for this is to enable the state as employer to extend medical assistance to all public servants and to control and manage costs.

A joint task team (both government and union representatives) will also be established to explore innovative methods to transform the current medical assistance system.

The proposed restructuring to employee benefits is primarily to ensure that all public servants have equal access to all benefits and to ensure a better life for all public servants.

1.5 Exit Management Tool

Why the need for an exit management tool?

The current retrenchment tool used by government is not affordable and is only beneficial to highly paid public servants. An innovative tool, the exit management tool is being developed for purposes of introducing a new redundancy management framework within the public service.

The retrenchment tool will seek to address:

• exit for operational requirements;
• facilitation of alternative service delivery;
• redeployment;
• rightsising; and
• the transformation process.

The retrenchment tool will not be used to victimise employees nor replace fair disciplinary procedures.

The new retrenchment package will entail benefits to be paid on retrenchment, this includes a social plan. Employer initiated retrenchments will only be done after exploring all other alternatives and in consultation with employee representatives.

2. HIV/AIDS Policy

That a joint task team be established to develop an HIV/AIDS policy to manage HIV/AIDS in the workplace.

The government as employer believes that this inclusive package is fair and in the interest of the Public Service transformation. Wage negotiations is by nature a complex process, which requires flexibility and patience on all sides. We therefore look to all public servants for their continued support.