Public Service Wage Settlement for the Year 2015/2016

Wednesday, 20 May, 2015

NEHAWU has implemented the mandate of its members by officially signing and concluding the 2015/2016 wage negotiations.

After a comprehensive consultation process, the majority of NEHAWU members accepted the package with some proposals, even the minority that had reservations about the package made it clear that they were not prepared to go on strike.

All COSATU affiliated unions and some non-affiliated unions signed a three year wage settlement yesterday, 19 May 2015, that will end in 2018 ,at the Public Service Co-ordinating Bargaining Council (PSCBC) offices in Centurion.

Although the package falls short of the demands of the workers for this year, it has managed to place health/medical assistance and housing at the top of the agenda.

Moving forward, the union is looking forward to engaging the employer on the new remuneration policy that will ensure that the starting base of public servants salaries is lifted up to acceptable standards.

This means that we have closed the chapter of negotiations for the next three years.

Some of what the public service wage settlement agreement contains is the following:

Cost Of Living Adjustment

- Agreed to settle at 7%, with the CPI +1% on the outer years.

- Agreed to settle on 28.5% on the Medical Aid.

- Accepted the new leave dispensation of 5 days for Parents of Children with Special needs.

- Accepted the new paternity leave dispensation of 3 days as a start with the intention of further improvement in the next round of negotiations.

- Agreed on the process to develop policy on the Recognition of Prior Learning (RPL) and Bursary Scheme for employees.

Government Employees Housing Scheme

- Parties have concluded a frame work agreement aimed at developing and finalizing Government Employees Housing Scheme, we have agreed to establish a joint committee that will develop administrative and governance model of the scheme.

- We agreed on the adjustment of the housing allowance to R1200 for everybody, however for employees who are currently not servicing bonds; they will only have access to R900 and the extra R300 will be put into a savings scheme, which they will access once proof of home ownership is produced. The aim of the housing scheme is to encourage home ownership and to ensure workers do not use their entire housing allowance to supplement their salaries, but buy houses.

- Parties could not find agreement on the extension of the housing allowance to both spouses if employed in public service. Unions feel that the clause is unconstitutional because it discriminates on marital grounds.

- We are therefore set to explore other avenues to challenge the clause, including the possibility of a legal challenge.

Other agreements

- We have also concluded in signing off the following other agreements;

- Danger Allowance,

- GEMS Review

- Post-Retirement Benefits - On medical aid and Housing.

This year’s negotiations were difficult, long and intense with a lot of horse-trading in order to get to a reasonable package for public servants in the current economic climate. Our negotiating team showed acumen and resilience and explored many avenues and techniques to ensure that our members’ get a fair deal. The employer was very stubborn and was only brought to sanity by the show of force and the flexing of muscles by the workers, who marched to the Treasury and DPSA offices.

Our union has continued to put firmly on the agenda the issue of access to housing and will be leading the campaign to rectify some of the unconstitutional positions adopted by the employer. This year’s agreement was focused on resolving the crisis of housing ownership in the public service, which is why there is a savings scheme that is meant to encourage housing ownership. We are resolute in addressing the question of access to affordable housing for public servants.

There is a lot of work ahead in improving remuneration and working conditions of workers in the public service. The leadership will continue to engage the structures, to explain the contents of the agreement and also pursue other avenues, to change the unconstitutional policies that are being implemented by the government.

Statement issued by Sizwe Pamla, NEHAWU Media Liaison Officer, May 20 2015