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National News Flash 12 of 2015: Wage Negotiations 2015: Conciliation Update

On Friday 8 May 2015 the conciliation process in which Labour and the Employer have been engaged in to resolve the wage dispute, declared by the Employer, reached the point where the Employer tabled a revised, final offer.
The main areas of the offer entail the following:

Salary adjustment:
•    A multi-term agreement for a 3 year period, structured as follows:
    * Year 1(2015/2016) = 7% with effect from 1 April 2015
    * Year 2 (2016/2017) = average projected CPI + 1% with effect from 1 April 2016
    * Year 3 (2017/2018) = average projected CPI + 1% with effect from 1 April 2017


Medical subsidy:
•    In-service employees
    * On 1 January 2015 the subsidy for employees belonging to GEMS to increase by 28,5%.
    * No improvement for employees belonging to open schemes.
    * The medical subsidy for GEMS members to increase annually with the Medical Price Index adjustment for a particular year. The first adjustment to be made on 1 January 2016.
•    Former employees
    * From 1 January 2015 former employees to qualify for a medical subsidy to a maximum of R 1850 p. m. irrespective of whether they belong to GEMS or an open scheme.


Housing
•    The housing allowance to be increased to R 1 200 p. m. with effect from 1 July 2015, but employees who currently qualify for the allowance and do not own a house (those who rent) will continue to receive the R 900 p.m. whilst the      remaining R 300 p. m. will be diverted to an individual linked savings account.
•    The housing subsidy to increase annually, on 1 July, with the average CPI for the preceding financial year.  The first adjustment to be effected 01 July 2017.  

(NB: The above will only become applicable if the Employer's offer is accepted by trade union majority in the PSCBC.)

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