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!

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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.

IMATU CELEBRATES INTERNATIONAL WOMEN’S DAY

IMATU will join together with our international counterparts in commemorating International Women’s Day. While we celebrate the credible achievements that have been made to date, studies continue to highlight the often entrenched gender gaps in our places of work, homes and communities. IMATU is continually striving for gender parity within our organisation, its structures and representatives #pressforprogress

IMATU WELCOMES NEW MINISTERIAL APPOINTMENTS AT COGTA

The Independent Municipal and Allied Trade Union (IMATU) welcomes the appointment of Dr Zweli Mkhize to the position of the Minister of Cooperative Governance and Traditional Affairs.

“We are very pleased that President Cyril Ramaphosa has appointed Dr Zweli Mkhize to the position of Minister of Cooperative Governance and Traditional Affairs. Minister Mkhize brings with him a wealth of knowledge, experience and leadership that he has accumulated in his various roles as a medical doctor, chairperson, MEC, Provincial Premier, university chancellor and most recently the Treasurer General of the African National Congress (ANC). We are hopeful that these skills combined with a commitment to public service will be translated into effective and sustainable service delivery in the local government sector. IMATU is also pleased to note that Andries Nel has retained his position as the Deputy Minister of Cooperative Governance and Traditional Affairs, responsible for provincial and local government. We believe his institutional knowledge of this Ministry, coupled with his previous experience in the Ministry of Justice and Constitutional Development will assist in achieving social transformation through a sustainable local government,” commented IMATU General Secretary, Johan Koen.

IMATU believes that with effective leadership, correctly channelled resources, the up-skilling of workers and the rooting out of corruption, local government can offer a sustainable service delivery model that will assist in the efficient collaboration between the local, provincial and national tiers of Government.

“IMATU remains committed to working towards achieving an efficient and sustainable service delivery model at local government level however, the commitment of our members on the ground must be matched by decisive implementation and political will at the top. We look forward to working together with the new Minister and his team to achieve the goals set out in the National Development Plan and more specifically assist in promoting service delivery across all municipalities and local government entities,” concluded Koen.

IMATU COMMENTS ON THE 2018 NATIONAL BUDGET

The Independent Municipal and Allied Trade Union (IMATU) remains concerned about South Africa’s ability to propel economic growth and development after the Minister of Finance’s 2018 Budget Speech.

While IMATU welcomes increased support for education, healthcare and social security, an increase in Value Added Tax (VAT) from 14% to 15% will affect our members and all fellow South Africans. Workers are battling high prices and high debt levels. The cost of basic necessities is constantly increasing and disposable income is decreasing. The increase in VAT and 52c increase in fuel levy are factors that will need to be considered when preparing for the next round of wage negotiations in March.

“In his speech, Minister Malusi Gigaba acknowledged the existing financial management and governance challenges facing numerous municipalities. We believe the strengthening of financial controls, improved revenue and asset management, efficient allocation of resources, cutting of wasteful expenditure and the elimination of corruption will directly benefit service delivery at a local government level. South Africa’s economy needs to grow faster and more inclusively. IMATU continues to support the National Development Plan’s vision of newly developed spatial plans for cities, improved public transport, better procurement and supply chain management and the upgrading of informal settlements. IMATU further welcomes the Minister’s acknowledgement of the economic importance of cities and his commitment to addressing the pressing needs of urban development and inclusive growth,” stated IMATU General Secretary, Johan Koen.

IMATU is also pleased to note the National Government’s intention to work with municipalities in order to effectively respond to the Country’s water crisis. As a union representing local government employees throughout South Africa, the scale and impact of water shortages in numerous Western Cape municipalities necessitated our financial intervention. Through our direct involvement in the drought affected areas, IMATU can confirm with certainty that only a coordinated effort by all social partners at the various tiers of government will bring about a sustainable solution.

“Inclusive economic growth and development will only take place once we start to effectively tackle the challenges of unemployment, inequality and poverty. IMATU believes that with effective leadership, correctly channelled resources, the up-skilling of workers and the rooting out of corruption, Local Government can offer a sustainable service delivery model that will assist in the efficient collaboration between Local, Provincial and National tiers of Government. Our members remain committed to social transformation through a sustainable local government, but it is imperative for the leaders of our country, provinces and municipalities to match this commitment and lead by example.” concluded Koen.

IMATU CONGRATULATES NEWLY ELECTED PRESIDENT CYRIL RAMAPHOSA

The Independent Municipal and Allied Trade Union (IMATU) would like to extend its congratulations to the newly elected President of the Republic of South Africa, Cyril Ramaphosa.

“We welcome the former Deputy President’s election to the position of President in the National Assembly yesterday. President Ramaphosa brings with him a wealth of knowledge, experience and determination, which will hopefully be translated into effective and sustainable service delivery for the people of South Africa,” commented IMATU General Secretary, Johan Koen.

IMATU is encouraged by the President’s commitment to put South Africa first and deal decisively with the serious challenges of corruption, state capture, failing state owned enterprises and youth unemployment.

IMATU is looking forward to hearing the President systematically outline the steps his cabinet will be taking to correct rampant corruption, fruitless and wasteful expenditure, sluggish economic growth, unemployment and resource shortages in his inaugural State of the Nation Address (SONA) tonight. “We are hopeful that the President will take the country into his confidence and deliver a roadmap that all social partners can buy into and support. Going forward, we need to ensure that South Africa is a place of equal access and opportunity for all who live in it,” he said.

“IMATU remains committed to working towards achieving an efficient and sustainable service delivery model at local government level however, the commitment of our members on the ground must be matched by decisive implementation and political will at the top. We look forward to working together with President Cyril Ramaphosa and his team to achieve the goals set out in the National Development Plan and more specifically assist in promoting service delivery across all municipalities and local government entities,” concluded Koen.