Update Report on the 2012 Public Service Wage negotiations since the commencement of the Facilitation Process

1st Facilitation Session (25 May 2012)

Subsequent to Labour declaring a deadlock in the salary negotiations on the 22 May 2012, Parties agreed to engage through a facilitation process to try and break the deadlock/impasse.

The facilitation process commenced on Friday, 25 May 2012 at the PSCBC with both Parties reiterating their mandated positions on the core demands as follows:

Issues Labour demands Employer Offer

Term of Agreement

Single Term Multi-Term
Salary Adjustment 8.7%
  • 5.9% for 2012/13
  • Projected CPI for 2013/14
  • Projected CPI for 2014/15
Housing Allowance R1500 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 to 30 September 2012 when the GEHS would be implemented.

The first session did not yield any change to the impasse. The Employer then requested time to consult with their mandating committee and would revert back to the PSCBC for further conciliation on Tuesday, 29 May 2012.

2nd Facilitation Session (29 May 2012)

The facilitation process entered its second day on Tuesday, 29 May 2012 after a short recess of one day to give the Employer the opportunity to consult with their mandating structures on Monday, 28 May 2012 as they requested. The facilitators met separately with both the Employer and Labour in order to get the settlement range from both Parties.

The process ended the second session with both Parties disclosing their settlement ranges to the facilitators as follows:

  • Employer: 5.9% - 6.5%
  • Labour: 8% - 8.7%

3rd Facilitation Session (30 May 2012)

The facilitation continued into the third session on 30 May 2012. During the process the facilitators reported to Labour that the Employer was prepared to table their revised offer as follows:

  • 6.5% for 2012/13
  • Projected CPI + 0.5% for 2013/14
  • Projected CPI + 0.5% for 2014/15

The facilitators reported that the Employer indicated that the revised offer would be available to Labour until Thursday, 07 June 2012 to afford Labour to consult with their members on the revised offer, failing which parties would be in dispute.

The facilitation process was elevated into a formal meeting in which both Parties recorded their positions as follows:

Issues Labour Employer

Term of Agreement

Single Term Multi-Term
Salary Adjustment Labour tabled their revised demand to 8%
  • 6.5% for 2012/13
  • Projected CPI + 0.5% for 2013/14
  • Projected CPI + 0.5% for 2014/15

    The offer would remain until Thursday, 07 June 2012 and failure to reach an agreement will result in Parties being in dispute.
    The Employer indicated that they would reserve their right to revert back to their original position and would decide on a further course of action.
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 to 30 September 2012 when the GEHS would be implemented.

Labour proposed to revert back to Council on Friday, 08 June 2012, but the Employer remained adamant that their offer remains until Thursday, 07 June 2012.

The facilitation process ended on Wednesday, 30 May 2012.