salary

UPDATE ON SALARY AND WAGE NEGOTIATIONS (UPDATE 2-2017): JOINT TRADE UNION WAGE DEMANDS

salaryA summary of the trade unions’ wage demands and SALGA’s response is set out in a schedule in Annexure “A” attached to this post. This schedule will be updated after every round of negotiations to reflect any progress made.

SCHEDULE OF TRADE UNIONS & SALGA WAGE DEMANDS

No Item Trade Unions’ Demands SALGA Demands
 

1

 

Duration of Agreement

 

·       A single year agreement for 2018-2019 financial year only.

 

 

·       A five (5) year agreement for the 2018-2022 financial years.

 

2

 

Salary Increase

 

·       Across the board salary increase.

 

·       15% or R3 155 whichever is the greater.

 

·       Year 1: 4.6%

·       Year 2: Average CPI (February 2018 – January 2019) plus 0.25%.

·       Year 3: Average CPI (February 2019 – January 2020) plus 0.25%.

·       Year 4: Average CPI (February 2020 – January 2021) plus 0.25%.

·       Year 5: Average CPI (February 2021 – January 2022) plus 0.25%.

 

 

3.

 

Notch Increases

 

 

·       All notch increases to be based on performance.

 

4

 

Minimum Wage

 

 

·       Increased to R10 000 per month.

 

·       No increase on minimum wage. Adequately addressed in the sector.

 

5

 

Housing Allowance

 

·       Increased to flat rate of R2 000 per month

 

·       Extended to all employees.

 

·       Increase by same percentage as salary increase.

 

·       Opposed to Rental Allowance. Home ownership must be encouraged.

 

·       Housing Investigation to introduce housing allowance for “Gap Market” employees be expedited.

 

 

6  

Conditions of Service

 

·       Benefits and conditions of service increased by same percentage as salary increase.

 

 

7

 

Medical Aid Subsidy

 

·       Current maximum employer contribution (R3 942-23) on medical aid subsidy to be retained – not increased. No further increases on maximum employer contribution rate to be considered.

 

·       Contribution rate of 60/40 (employee 40% / employer 60%) remain in place.

 

·       Current SALGBC project to establish Low Cost Benefit Option for low income employees be continued. Initiatives by National Government to introduce a National Health Insurance (NHI) be monitored insofar as it may be beneficial for employees.

 

 

8

 

Retirement Funds

 

·       Maximum employer contribution towards defined contribution (DC) retirement funds to remain capped at 18%, subject to Pension Fund rules.

 

·       Retirement funds with contribution rates higher than 18% be “ring-fenced”.

 

·       No further new entrants be allowed into defined benefit (DB) funds.

 

·       Parties to commit to the retirement fund restructuring process currently underway in the SALGBC, under supervision of agreed facilitator.

 

 

9

 

Protection Clause

 

·       Protection clause (should CPI be lower than 5% or higher than 10%) inserted for every financial year.

 

·       Percentage thresholds (5%-10%) subject to negotiation.