IMATU ENDS NELSON MANDELA BAY METRO STRIKE

IMATU Nelson Mandela Bay Branch successfully negotiated a Long Service Bonus Settlement Agreement under the auspices of the CCMA on 21 June 2018.

This agreement brings an end to a week-long, protected strike, led by IMATU. The Settlement Agreement was signed today at the Offices of the CCMA in Govan Mbeki Avenue, Port Elizabeth.

Viva IMATU Viva

EID MESSAGE

Our Muslim members and colleagues will be celebrating Eid-Ul-Fitr this week.

We wish to extend warm wishes to all our Muslim members and their loved ones.

salary

WAGE NEGOTIATIONS 2018/2019: (FEEDBACK REPORT NO 7/2018)

salaryThe 6th round of wage negotiations for the 2018/2019 financial year, as well as wage curve negotiations took place on 7 June 2018, in Boksburg, under the auspices of the facilitator, Mr Moe Ally.

Hereinafter follows the feedback report.

Wage Negotiations

The facilitator opened the negotiations confirming that both IMATU and SALGA communicated their acceptance of the facilitator’s proposal at the previous round of negotiations, while SAMWU was given further time to complete their mandating process. The facilitator therefore requested that SAMWU indicate what their position is on the facilitator’s proposal.

SAMWU responded that its mandate is to reject the facilitator’s proposal and submit revised wage demands of an 8% salary increase on a 3-year wage agreement, alternatively a 7% salary increase on a single year agreement.

Having heard the revised wage demands, SALGA requested some time to consider their position. The facilitator then broke the parties into separate caucuses in order to engage separately with each party.

Upon resumption of the meeting, SALGA stated that it has reached the limits of its mandate in this process. Taking the financial state of municipalities into account, SALGA is in no position to accommodate a salary increase that is higher than what was proposed in the facilitator’s proposal. SALGA cannot therefore accede to SAMWU’s revised wage demands, and its position remains to accept the facilitator’s proposal.

IMATU stated, for the record, that it obtained a mandate for the facilitator’s proposal under difficult circumstances and that any attempt to restructure the proposal by, for example, reducing increases on the housing allowance or medical aid subsidy, to fund a revised salary increase, will compel IMATU to also withdraw its acceptance of the facilitator’s proposal.

SALGA subsequently gave notice that, due to SAMWU’s rejection of the facilitator’s proposal, it is also withdrawing its acceptance of the facilitator’s proposal and reverting to its last offer prior to the facilitator’s proposal. Effectively therefore, SALGA’s offer is a salary increase of 6.6% and a 3-year wage agreement.

In response, SAMWU indicated that it reverts to its opening wage demand of 15%. SALGA sought to explain that it did not revert to its opening demand, but to its last offer prior to the facilitator’s proposal. However, the position of the parties remained unchanged.

IMATU indicated that, due to SALGA’s withdrawal of their acceptance of the facilitator’s proposal, IMATU will declare a dispute and refer the matter to interest arbitration.

On this basis, the facilitator formally recorded that the parties are in deadlock and closed the negotiations.

Wage Curve Negotiations

SALGA further gave notice that, due to SAMWU’s rejection of the facilitator’s proposal, it is also suspending its participation in the wage curve negotiations. SALGA stated that they had made it clear from the beginning that a deal on the wage curve negotiations is dependent on a satisfactory outcome on the wage negotiations.

IMATU indicated that it intended to table a number of new suggestions to conclude the wage curve negotiations, but it will engage the parties at the next meeting of the Executive Committee scheduled for 22 June 2018.

On this basis, wage curve negotiations were formally suspended.

Dispute Process and Way Forward

As is evident from this feedback report, the facilitator’s proposal is no longer on the table as SALGA has reverted to its last offer prior to the proposal. Officially, the only offer on the table is a salary increase of 6.6%. Negotiations have formally deadlocked.

IMATU referred a dispute to the SALGBC for conciliation on 8 June 2018. SALGA and SAMWU have been cited as Respondents in the dispute.

The SALGBC has set down IMATU’s dispute for conciliation on 28 June 2018, and appointed Mr Pat Stone as conciliator.

The parties will next meet on 28 June 2018 where a conciliator will seek to resolve the dispute. IMATU has requested, in the dispute referral, that the facilitator’s proposal be implemented. Should the matter remain unresolved at conciliation, a certificate of non-resolution will be issued. In that case, IMATU will refer the matter for interest arbitration.

Members will be updated as the matter progresses.

salary

IMATU TO DECLARE DISPUTE AFTER WAGE NEGOTIATIONS DEADLOCK

salaryThe Independent Municipal and Allied Trade Union (IMATU) is declaring a dispute after the local government salary and wage negotiations deadlocked today.

Salary and wage negotiations deadlocked after the Facilitator was unable to get all parties to accept the Facilitator’s Proposal. IMATU and SALGA had previously accepted the Facilitator’s Proposal.

SALGA stated that due to SAMWU’s rejection of the Facilitators Proposal, it is also rejecting the Facilitator’s Proposal. SALGA therefore reverts to its last offer before the Facilitator’s Proposal, that is to say an increase of 6.6%. SALGA is also suspending its participation in further negotiations on uniform salary scales (wage curve).

IMATU will request in its dispute declaration that a conciliator be appointed by the Bargaining Council to resolve the dispute and that the Facilitators Proposal be implemented. Should the dispute remain unresolved, a certificate of non-resolution will be issued. Thereafter IMATU intends to submit the matter to interest arbitration.

“Our negotiators are always mindful of the growing financial pressure faced by members, including the recently introduced VAT and fuel levy increases as well as general increases in the cost of living. Given the current economic climate and growing concerns regarding the financial sustainability of some municipalities, we believed that the Facilitator’s Proposal did make an attempt to balance individual priorities and the sustainable growth and development of the sector. Our internal mandating process confirmed that our members were in agreement,” commented IMATU General Secretary, Johan Koen.

The key aspects of the Facilitator’s Proposal are;

• Three year wage agreement.
• Salary increases of 7% (Year 1), CPI plus 1.5% (Year 2), CPI plus 1.25% (Year 3).
• Housing Allowance, Maximum medical aid subsidy and minimum wage to increase by same percentages as salary increase for all three years.
• A R350.00 non-pensionable allowance for gap market employees that also increases by same percentages as salary increase for all three years.

salary

IMATU TO CONSULT MEMBERS ON FACILITATOR’S PROPOSAL

salaryThe Independent Municipal and Allied Trade Union (IMATU) received the Facilitator’s Proposal yesterday, after the conclusion of the fourth and final round of salary and wage negotiations in Durban.

It should be noted that the Facilitator’s Proposal is not binding, all parties to the negations must formally accept the Proposal in order for the Agreement to be recognised. The Facilitator, Mr Moe Ally, presented the following:

 

  1. The Salary and Wage Collective Agreement shall begin 1 July 2018 and remain in force until 30 June 2021.

 

  1. The Agreement makes provision for an initial across the board wage increase of 7%, effective from 01 July 2018. Local government employees will receive the projected annual Consumer Price Index (CPI) plus 1.5% in the second year of the agreement (2019/20) and a further CPI plus 1.25 % in year three (2020/21). The Salary and Wage Agreement also contains an acceleration clause which stipulates that if the CPI falls below 5%, inflation will be deemed 5% and similarly if the CPI increases beyond 10% then it will be deemed to be 10%.

 

  1. Employees who earn a basic salary of R 9 000 or less shall receive a further 0,5% increase with effect from 1 January 2019.

 

  1. From 1 July 2018, the minimum wage shall increase to R 7 324.24 per month. With effect from 1 July 2019, the minimum wage will increase by a further 0.5% in addition to the CPI linked increase.

 

  1. The housing allowance shall increase by the same percentage as the annual salary and wage increases each year. GAP market employees who earn a basic salary of R 9 000 per month or less, shall receive a non-pensionable allowance of R350 as of 1 July 2018. This non-pensionable allowance will thereafter increase by the same percentage as the annual wage increase for the duration of the agreement.

 

  1. The maximum medical aid employer contribution rate shall increase by the same percentage as the annual salary and wage increase.

 

The parties have agreed to continue negotiations regarding the Retirement Fund Restructuring procedure in a parallel process under the auspices of the bargaining council.

Similarly, the Facilitator’s Proposal acknowledges the commitment of all parties to completing the housing investigation in order to determine an appropriate home owners allowance and improve access to housing for local government employees.

“The negotiators were mindful of the growing financial pressure our members face given the recently introduced VAT and fuel levy increases. While the requirements of our members remain at the forefront of all negotiations, we believe that the parties did make an attempt to balance individual priorities and the sustainable growth and development of the sector,” commented IMATU General Secretary, Johan Koen

Members will be engaged through their respective regional structures in order to establish a mandate going forward. IMATU will need to communicate its acceptance or non-acceptance of the Facilitator’s Proposal by 16 May 2018.

salary

IMATU AWAITS FACILITATORS SALARY AND WAGE PROPOSAL

salaryThe Independent Municipal and Allied Trade Union (IMATU) remains committed to achieving just increases for its members heading into the final day of salary and wage negotiations this morning.

“Currently the South African Local Government Association (SALGA) is proposing a three year wage agreement, starting with a 6.6% across the board increase in year one, followed by a percentage increase equal to the projected annual Consumer Price Index (CPI) plus 1% in years two and three respectively. We are however standing firm on our demand for an 8% across the board salary increase in the first year, followed by CPI plus 2.25% in year two and CPI plus 2% in year three, should a multiyear agreement be considered,” explained IMATU General Secretary, Johan Koen

IMATU is pleased to report that SALGA has agreed to increase the housing allowance, minimum wage and maximum medical aid employer contribution rate by the same percentage as the annual salary and wage increase. “IMATU is also proposing that in addition to the across the board increase, the housing allowance is increased by a further R150 in year one, R100 in year two and R50 in year three. These increases will assist towards bringing the lagging local government subside in line with its comparable counterparts in the public sector,” explained Koen.

“With regards to employees who do not own property, unions are proposing that the non-pensionable amount be increased to R378 per month in year one, followed by the same salary and wage percentage increase in years two and three. This increase should be extended to all GAP market employees who earn R15 000 and less per month. The employer is currently offering a capped monthly increase of R350 to employees earning less than R8 000 per month,” stated Koen.

It is likely that more time will need to be allocated to the complex issues of housing subsidies and pension funds with in the sector. It is expected that the facilitator’s proposal will make provision for the continued negotiations regarding pension fund contributions and that the housing investigation will be allowed to continue.

The fourth round of the wage negotiations and wage curve negotiations is currently taking place in Durban. Parties have worked hard to reach an agreeable solution that will ensure fair salary increases for workers and the sustainability of the sector. A facilitator’s proposal is expected to be presented later today.

Members will be continually updated as the matter progresses.

IMATU CONGRATULATES NICKY NEAL

A hearty congratulations goes out to Nicky Neal and her fellow lawn bowls team members who secured a silver medal for South Africa at the Commonwealth Games currently underway in Australia! The bowls quartet narrowly lost to defending world champions Australia in their gold-silver match early on 9 April 2018.

Nicky is an IMATU member, working for the City of Johannesburg.

Congratulations Nicky, we are all very proud of you!

IMATU CELEBRATES HUMAN RIGHTS DAY

IMATU will join fellow South Africans tomorrow in commemorating Human Rights Day. This day reminds us of the immense sacrifices that accompanied the struggle for the attainment of democracy in South Africa.

LEGAL TRAINING TAKES PLACE AT THE NATIONAL OFFICE

This week our Regional Managers and Labour Relations Officers attended training at the National Office to fine tune the principles of drafting pleadings, notices of motion and affidavits.

The objective of this training was to sharpen participants’ drafting skills, while also taking into account the latest High Court directives. Training was facilitated by the Law Society of South Africa and led by Senior Council, Ismail Hussain.

IMATU ensures that its staff embark on continuous skills development and training in order to provide the best service possible to our members!

salary

WAGE NEGOTIATIONS 2018/2019: (FEEDBACK REPORT NO 3)

salaryThe third round of the wage negotiations, and wage curve negotiations for the 2017/2018 financial year took place on 5-7 March 2018, in Durban, under the guidance of the facilitator, Mr Moe Ally.

Hereinafter follows the feedback report.

Salary and Wage Negotiations
The parties commenced negotiations by forming a smaller committee where possible settlement options could be explored on a confidential and without prejudice basis. Much of the time was spent considering various options for settlement.

IMATU indicated that, since the last round, new tax measures, such as VAT increases and fuel levies, have been introduced which has added to existing financial pressures experienced by our members. This is causing the negotiators to harden their stance on the actual increases.

The facilitator subsequently proposed that, in order to make progress, the parties should revise their positions, on the proposed salary increase, as follows:

Item: Across the Board Salary Increase
SALGA 5.9%
IMATU 10% or R 2103, whichever is the greater

SALGA agreed to increase its offer on a salary increase to 5.9%. The trade unions could not, however, make a joint response to SALGA’s revised offer and it was agreed to defer the matter to the next round.

The parties closed negotiations on this basis and agreed to make more meaningful adjustments to their positions at the next round. Parties will also work towards a facilitator’s proposal which can be taken back to members for a mandate.

Other issues such as a possible multi-year agreement, housing allowance, medical aid and minimum wage are still under discussion, and are likely to form part of the facilitator’s proposal at the next round.

Wage Curve Negotiations
The parties also formed a smaller committee determine the implementation principles for a possible wage curve collective agreement.

The following issues are currently under discussion:
• Implementation date for the new wage curve;
• Appeals against grading of municipalities;
• Migration of employees to the new wage curve;
• Frequency of review of salary scales and grading outcomes;
• Finalisation of Job Evaluations to implement the wage curve; and
• Conditions for notch increases in the new wage curve.

The consultants, appointed by the SALGBC, have also reviewed the grading outcomes of municipalities using the latest financial statements. The proposed uniform salary scales have also been updated with the latest market figures.

IMATU submitted a draft collective agreement for discussion and it was agreed that it will form the basis for a possible wage curve collective agreement.

The parties are aiming for 1 July 2018, as a possible implementation date for the wage curve.

The next round of wage negotiations is scheduled to take place on 16-18 April 2018.

Members will be continually updated as the matter progresses.