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UPDATE ON WAGE NEGOTIATIONS 2018/2019 (UPDATE 10/2018)

salaryThe arbitrator in IMATU’s wage interest arbitration, Mr Pat Stone, issued his arbitration award today.

Please note that the arbitrator has ruled in IMATU’s favour.

In terms of this ruling, the facilitator’s proposal must be implemented with the following amendment:

The additional 0,5% increase, for employees earning R9000.00 or less, shall take effect on 1 October 2018.

Effectively, it means that for the current financial year (2018-2019):

• All employees shall receive a salary increase of 7%.
• Employees earning R9000.00 or less shall receive an additional increase of 0.5% from 1 October 2018.
• The minimum wage, housing allowance and maximum medical aid employer contribution must also increase by 7%.

The facilitator’s proposal takes effect on 1 July 2018, this means that all increases must be backdated to 1 July 2018.

Please note that although it is indicated that the award is binding on essential services employees only, this is merely a technicality as all parties have already agreed to convert the facilitator’s proposal into a collective agreement that will cover all employees in the sector.

The national office has already forwarded a draft collective agreement to the other parties in order to commence the process for concluding the collective agreement. A copy of the arbitration outcome can be viewed by following this link http://www.imatu.co.za/wp-content/uploads/outcome_of_arbitration-hq061807-imatu_vs_salgasamwu.pdf

Members will be updated once the collective agreement is finalised.

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Update on Wage Negotiations 2018/2019 (Update 9/2018)

salaryThe arbitration of IMATU’s dispute, before Mr Pat Stone, was concluded yesterday.

Prior to the commencement of the arbitration, the parties held a pre-arbitration conference in order to agree on the facts and determine the terms of reference and powers of the arbitrator.

During the pre-arbitration discussions, an opportunity emerged for the two trade unions to consolidate their approaches and present a joint position to the arbitrator. This would require IMATU to make a slight amendment to its position namely that the additional 0,5% for low income earners (earning less than R9 000.00) be implemented with effect from 1 October 2018, instead of 1 January 2019 as contained in the facilitator’s proposal.

It was therefore decided to present such a joint trade union position to the arbitrator.

The parties to the dispute also agreed to limit the powers of the arbitrator. The arbitrator may choose only one of the following two positions:

• SALGA’s position: That the facilitator’s proposal be implemented as it currently stands; or

• Trade Unions’ position: That the facilitator’s proposal be implemented, provided that the additional 0.5% salary increase for low income earners take effect on 1 October 2018.

This effectively means that the arbitrator cannot award anything less than the facilitator’s proposal.

IMATU requested the arbitrator to deliver an award on an expedited basis, due to the urgency of the matter. The arbitrator indicated that he will endeavour to issue his award by no later than 31 July 2018.

Members will be updated once the arbitration award has been received.

nelson-mandela

IMATU CELEBRATES MANDELA DAY

nelson-mandelaThe Independent Municipal and Allied Trade Union (IMATU) will be joining fellow South Africans in celebrating Mandela Day tomorrow.

“Each year we are reminded of the 67 years of his life that the late Nelson Mandela gave fighting for the rights of humanity, equality, justice and democracy all South Africans enjoy today. We are pleased, especially on the eve of the 100th anniversary of Nelson Mandela’s birth, to be one of many organisations and individuals donating 67 minutes of our time or resources to make a difference in the lives of others. As a union representing local government employees throughout South Africa, we take pride in contributing towards positive change within our local communities,” explained IMATU General Secretary, Johan Koen.

The IMATU National Office will be assisting in the building of a permanent classroom for the foundation phase learners at the Kaalfontein Primary School in Midrand.

Staff from the Gauteng Region will visit and make donations to the Villa Lethemba Home that caters for children with special needs in Kempton Park.

As part of their Mandela Day activities, the Mangaung Branch from the Free State Region, will be assisting with the planting of trees and plants to create a park in the Botshabelo area. Members from the Moqhaka Branch are cleaning the Phekolong Hospice Centre at the Old Voortrekker Hospital in Kroonstad.

Shop Stewards and members of the Matlosana Branch in the North West and the Hantam Branch in the Northern Cape will participate in clean-up projects in and around their municipal buildings.

As part of their Mandela Day efforts this year, the Johannesburg Region will be donating soccer balls to children in their surrounding community.

The Nelson Mandela Bay Branch Committee will be visiting the Gelvan Park Frail Care Centre and donating fresh produce and food products to the staff and residents.

The Tshwane Region will be assisting with multiple improvements at the Tshwaranang Children’s Home in Pretoria, followed by lunch for the staff and children.

In the spirit of Mandela Day, the Cape Town Metro Region made a considerable donation to the Fikelela Children’s Home in Khayelitsha and the Western Cape Region will be donating blankets to a shelter in Paarl as well as providing sanitary ware to a local old age home.

Shop Stewards and staff from the eThekwini Region will be painting classrooms, landscaping and providing lunch for the children at the Jabulani Nursery and Pre-primary School.

The KwaZulu Natal Region organised and sponsored netball clothing and a trophy for the Kokstad Municipality’s Mandela Day sports tournament. The four sponsored primary schools include Kokstad Primary School, Horse Shoe Primary School, Franklin Primary School, Nomzamo Primary School. This event involves as many children as possible and promotes unity through participation in sporting activities.

“The annual birthday of our former President Nelson Mandela has come to represent a day in which we remember what he in his individual capacity has done for our country and what we in turn can do for each other. IMATU is a proud supporter of Mandela Day,” concluded Koen.

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UPDATE ON WAGE NEGOTIATIONS 2018/2019 (UPDATE 8/2018)

salaryThe conciliation of IMATU’s dispute was concluded yesterday. The matter remains unresolved and a certificate of non-resolution was issued.

IMATU subsequently referred the matter for interest arbitration.

The SALGBC had set down the matter for arbitration on 23 July 2018.

By agreement, Mr Pat Stone has been appointed as the arbitrator.

Regions will be updated as the matter progresses.

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IMATU REFERS SALARY AND WAGE DISPUTE FOR ARBITRATION

salaryIndependent Municipal and Allied Trade Union’s (IMATU) dispute on the deadlock in the salary and wage negotiations, which was previously referred for conciliation, was concluded today. The matter remains unresolved and a certificate of non-resolution was issued. As a result, IMATU has referred the matter for interest arbitration.

The Conciliator indicated that while it was clear that the disputing parties are largely in agreement on the implementation of the Facilitator’s Proposal, it is essential that all parties must agree before the matter can be settled.

The dispute was declared by IMATU after the salary and wage negotiations deadlocked earlier this month. IMATU requested in its dispute referral that the Facilitator’s Proposal be implemented.

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.

“Continual increases in the cost of living, inflationary pressures and a sluggish economy have necessitated that we negotiate the best outcome for our members. The proposed multi-year salary and wage agreement would ensure that local government employees receive above inflationary increases over the next three years,” stated IMATU General Secretary, Johan Koen.

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.

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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.

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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.

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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.