UPDATE REPORT ON 2012 PUBLIC SERVICE WAGE NEGOTIATIONS AS ON THE 25 JUNE 2012

The Public Service Wage negotiations resumed on the 25 June 2012 at the PSCBC with Labour heeding for the Minister’s call to go back to the negotiating table.  Subsequent to the call, Labour requested for the convening of the Council in order to continue with the negotiations.

COSATU affiliated unions which are the majority in the PSCBC and have not declared a dispute, indicated their willingness to continue and negotiate with a view to reaching a settlement.

After some protracted engagements, the Employer tabled their revised offer through some insignificant moves on the percentage increase by 0.1% + 0.1%.

Labour also responded to the Employer’s insignificant move by revising their demand from 8% to 7.9%.

By close of negotiations in the early hours of the morning both parties agreed to take the revised document to their mandating structures for further consultations on the following positions:

ISSUES

LABOUR

EMPLOYER

Term of Agreement

Single Term

Multi-Term

Salary Adjustment

7.9% for 2012/13

  •   6.7% for 2012/13
  • Projected CPI + 0.7% for 2013/14
  • Projected CPI + 0.5% for 2014/15

Housing Allowance

R1500.00 pending the finalization of the GEHS;

An increase of the Housing subsidy from R800.00 to R900.00 p.m. effective from 01 April 2012 and that the Housing allowance will be converted into an Employer subsidy towards a bond once the Government Employee Housing Scheme (GEHS) is established.

The negotiations would resume after consultation with mandating structures.

NOTE:  The Draft Resolution that the Employer initially signed is off the table of negotiations and parties are working on the new draft towards settlement.