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