Public Service Salary Negotiations Update

DRAFT 1 [EMPLOYER Offer on Multi-term] (edited) March 16, 2012

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DRAFT AGREEMENT ON SALARY ADJUSTMENTS AND IMPROVEMENTS TO CONDITIONS OF SERVICE IN THE PUBLIC SERVICE FOR THE PERIOD 2012/13 – 2014/15
1. OBJECTIVES
1.1. To provide for annual general salary adjustments and improvements to certain conditions of service for employees for the FY2012/13 - 2014/15.
1.2. To amend certain PSCBC resolutions.

2. SCOPE
2.1. This agreement binds the Employer and employees who:
2.1.1. Are employed by the State; and
2.1.2. Fall within the registered scope of the Council.

3. NOTING THAT:
3.1. PSCBC Resolution 2 of 2011 specifies timeframes for the conclusion and/or implementation of certain issues including:
3.1.1. Development of a home ownership scheme;
3.1.2. Minimum Service Level Agreement; and
3.1.3. Development of a remuneration policy.
3.2. These timeframes have or will not be met;
3.3. The wage bill as a percentage of GDP has increased from 9.4% in 2007 to 10.5% in 2011/12;
3.4. The real GDP growth has decreased from 6% in 2007/8 to 2.8% in 2011/12. This implies that government will not be able to meet its priorities, like infrastructure spending, poverty alleviation initiatives, etc without borrowing for recurring expenses, such as wages;
3.5. That unemployment remains relatively high, and that parties have a responsibility to assist government in its effort to reduce unemployment and poverty;
3.6. Government’s initiative to grow the economy through investment in infrastructure development; and
3.7. Additional to the salary increment referred to in paragraph 4. below; on 1 July 2012 (with the exception of South African Police Services Act personnel, who receive pay progression every three years) satisfactory performers will receive their pay progression in accordance with PSCBC Resolution 3 of 2009 and the various OSD resolutions signed in the sectors.

DRAFT 1 [EMPLOYER Offer on Multi-term] (edited) March 16, 2012

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THE PARTIES TO COUNCIL AGREE AS FOLLOWS:
4. SALARY ADJUSTMENTS
4.1. The salary adjustment for the period 1 April 2012 to 31 March 2013 will be 4% effective on 1 April 2012.
4.2. The salary adjustment for the period 1 April 2013 to 31 March 2014 will be 4.5% effective on 1 April 2013.
4.3. The salary adjustment for the period 1 April 2014 to 31 March 2015 will be 4% effective on 1 April 2014.

5. LONG SERVICE RECOGNITION
5.1. Long service in the public service will be recognised in the following manner:
5.1.1. 10 years continuous service: increase annual leave entitlement from 26 working days to 30 working days plus certificate;
5.1.2. 20 years continuous service: a cash award of R 7 500 plus a certificate;
5.1.3. 30 years continuous service: a cash award of R 15 000 plus a certificate; and
5.1.4. 40 years continuous service: a cash award of R 20 000 plus a certificate.

6. NIGHT SHIFT ALLOWANCE
6.1. The current fixed fee night shift allowance model is retained.
6.2. The night shift allowance be increased from:
6.2.1. R2,12 to R 2,69 per hour from 1 July 2012.
6.2.2. R2,69 to R 3,35 per hour from 1 July 2013
6.2.3. R3,35 to R 4,00 per hour from 1 July 2015
6.3. The night shift allowance of R4,00 per hour will be revised annually based upon the CPI for the previous year, with effect from 1 April 2016.
6.4. In the interest of sound financial management, the night shift allowance will be paid to eligible employees in line with the employee’s monthly pay date.
6.5. In the event that shifts are structured in such a way that only part of the hours fall within the defined night shift period (18:00 to 06:00 or 19:00 to 07:00), the employee will receive the night shift allowance for such hours.

DRAFT 1 [EMPLOYER Offer on Multi-term] (edited) March 16, 2012

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6.6. A pro rata night shift allowance will be paid to an eligible employee commensurate with the hours the employee has worked, provided the period of absence has been approved by the supervisor/manager.
6.7. The night shift allowance will not be paid to an employee who has been granted a leave of absence.
6.8. The personal shift allowance will be phased out when the value of the night shift allowance exceeds the value of the personal shift allowance paid to an employee.

7. ORDINARY WORK ON SUNDAY AND PUBLIC HOLIDAYS
7.1. A pro rata allowance will be paid to an eligible employee for ordinary work on Sunday and/or Public Holidays commensurate with the hours worked, provided the period of absence has been approved by the supervisor/manager.

8. RECOGNITION OF IMPROVED QUALIFICATIONS
8.1. A once-off cash bonus of 5% of the employee’s annual salary notch, limited to the minimum notch of salary level 8, will be paid to an employee in recognition of attaining an improved qualification.
8.2. The qualification must be related to the employee’s scope of work and should improve the employee’s performance and the service delivered by the employee.
8.3. The cash bonus will be payable to employees who commence their studies with effect from 1 April 2013.
8.4. No cash bonus will be paid to an employee who has been granted a state-funded bursary for the attainment of an improved qualification.
8.5. The cash bonus is limited to the attainment of one additional qualification.

9. SHOPSTEWARD LEAVE
9.1. Leave for shopstewards of recognised employee organisations is to be increased from 10 working days in a leave cycle to 12 working days with effect from 1 January 2013.

10. OUTSOURCING
10.1. The PSCBC should review the impact of existing outsourcing and agentisation practices within the public service as agreed to in the 2010 Public Service Summit.

DRAFT 1 [EMPLOYER Offer on Multi-term] (edited) March 16, 2012

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10.2. A discussion document reflecting a public service position should then be tabled at NEDLAC to solicit a position on the public sector.

11. COMPLIANCE WITH OCCUPATIONAL HEALTH AND SAFETY ACT
11.1. The PSCBC should conduct an independent study on the principle of “decent work” and compliance with the Occupational Health and Safety Act.
11.2. The research report must be tabled at the PSCBC for discussion.

12. PERFORMANCE MANAGEMENT AND DEVELOPMENT SYSTEM (PMDS)
12.1. The employer will review the current PMDS and table its proposal to the PSCBC for consultation by 31 July 2013.

13. EXIT MANAGEMENT SYSTEMS
13.1. The employer will review the exit management system in order to expedite the processing of pension payouts.

14. FAMILY RESPONSIBILITY LEAVE
14.1. With effect from 1 January 2013 an employee will be entitled to:
14.1.1. 5 working days family responsibility leave in a leave cycle for utilisation if the employee’s spouse or life partner gives birth to a child; or the employee’s child, spouse or life partner is sick; and
14.1.2. 5 calendar days leave per annual leave cycle for utilisation if the employee’s child, spouse or life partner dies; or an employee’s immediate family member dies.

15. PRE-NATAL LEAVE
15.1. With effect from 1 January 2013 an eligible employee will be entitled to 8 working days pre-natal leave, per pregnancy, allowing the employee to attend medical examinations by a medical practitioner or midwife, as well as tests related to the pregnancy.
15.2. An employee can utilise a full day or part of a day.
15.3. An application for pre-natal leave should be supported by reasonable proof that the employee attended a doctor’s appointment and/or went for tests related to the pregnancy.

DRAFT 1 [EMPLOYER Offer on Multi-term] (edited) March 16, 2012

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15.4. An employee who has used all her pre-natal leave may, subject to the approval of the Head of Department, apply to use available annual leave and/or unpaid leave.
15.5. Absences related to medical complications during the pregnancy should continue to be covered by sick leave.
15.6. All other maternity leave provisions, as defined in the Determination on Leave of Absence, remain unchanged.

16. RE-ARRANGEMENT OF WORKING TIME
16.1. The PSCBC should review the working time arrangements in the Public Service with a view to determine which service delivery areas require additional and/or different working time arrangements to facilitate service delivery improvement and employment creation.

17. DANGER ALLOWANCE
17.1. The PSCBC should conduct an investigation to determine whether or not the following occupational categories are exposed to a genuine risk, the nature and extent of the risk, the frequency of the risk, as well as the impact on the safety of the employee to ascertain whether or not danger allowance should be extended to the following categories:
17.1.1. Mine inspectors;
17.1.2. Immigration officers;
17.1.3. Defence Secretariat personnel; and
17.1.4. Employees at places of safety (both educators and employees employed in terms of the Public Service Act, 1994), youth care centres, child care schools, reform schools and schools identified as ‘dangerous’.
17.2. The report with regard to the possible extension of the danger allowance to the identified occupational categories should be tabled to the PSCBC.

18. AMENDMENTS TO PSCBC RESOLUTION 12 OF 2002
18.1. The amendment of paragraph 3.5 of PSCBC Res. 12 of 2002 to read as follows:

“Basic annual pension increase with effect from 1 April of each year; together with an additional catch-up increases equal to 100% of the average CPI (all items) over the previous year, to those pensioners whose annuities are less than the minimum level.”

DRAFT 1 [EMPLOYER Offer on Multi-term] (edited) March 16, 2012

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19. AMENDMENTS TO PSCBC RESOLUTION 7 of 2000
19.1. Clause 7.10 (b) of PSCBC Resolution 7 of 2000 is hereby deleted.

20. AMENDMENTS TO PSCBC RESOLUTION 5 of 2001
20.1. Clause 7.10 (b) of PSCBC Resolution 5 of 2001 is hereby deleted.

21. AMENDMENTS TO PSCBC RESOLUTION 3 of 2009
21.1. Clause 3.6.3.2 of PSCBC Resolution 3 of 2009 be amended to allow employees whose posts are graded on salary levels 10 and 12 to be appointed and remunerated on salary levels 10 and 12 respectively.

22. AMENDMENTS TO PSCBC RESOLUTION 2 0F 2011

GEHS
22.1. To amend clause 3.3.6 as follows:

“The phase 1 implementation of the Government Employees Housing Scheme will commence on 30 October 2012. The proposal shall be tabled in the PSCBC for negotiation on 1 August 2012 and implemented as per the agreement of the negotiations.”
MSLA
21.3. To amend clause 3.4.2 as follows:
“The outcome of the engagement referred to in 3.4.1 above will be tabled for consideration at the PSCBC and implemented with effect from 1 April 2013.”

23. REMUNERATION POLICY
23.1. The Employer commits to review the Remuneration Policy as per the process outlined in Annexure A.
23.2. The parties may conduct independent research and develop their respective positions papers.
23.3. These papers will be tabled for consultation at a Remuneration conference.

24. DISPUTE RESOLUTION

DRAFT 1 [EMPLOYER Offer on Multi-term] (edited) March 16, 2012

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24.1. If there is a dispute about the interpretation or application of this agreement any party may refer the matter to the Council for resolution in terms of the dispute resolution procedure of the Council.

25. IMPLEMENTATION OF AGREEMENT
25.1. This agreement shall come into effect on the date it enjoys majority support and will remain in force unless terminated or amended by agreement.
25.2. The Council will monitor the implementation of this agreement.

THIS DONE AND SIGNED AT ______________________ OF THIS __________ DAY
OF _______________________ 2012.


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