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Wage Negotiations 2015/ 2016 Update: 26 March 2015

Wage negotiations continued on 25 March 2015 with the Employer tabling the following revised offer:

• Salary adjustment:
  CPI (4,8%) + 1,0% = 5,8% for 2015/16
  CPI + 0,5% for 2016/17
  CPI + 0,5% for 2017/18

• Increase in the medical subsidy for GEMS members that translates to an improvement of approximately a 28,5%.

• The same improvement in the medical subsidy for former employees, but still limited to a principal member + 1 – applicable to both GEMS and open scheme members.

On the GEHS the Employer reinstated their proposals in respect of the scheme with inter alia the following changes:

• A Housing Allowance of R 1 100 p.m. to be paid to eligible employees (i.e. those that own houses and are repaying bonds, those that rent and those that have paid off their bonds).
• New employees only to receive the allowance if they own a house and/or are repaying a home-loan for a house in which they live.
• Eligible employees who do not own a house (i.e. those who rent) will have R 500 of the R 1 100 p.m. diverted into individual-linked savings accounts that will be held for them for a maximum of 10 years – savings can be withdrawn any time during that period, but only for purposes of purchasing a house or improving a home.

The Employer indicated that the offer is a package deal, meaning that the offer in respect of the wage and related conditions of service improvements is only available if the offer on the GEHS is accepted.

In response to the Employer’s offer, Labour indicated that it was not acceptable, prompting the Employer to claim that deadlock had been reached and indicating that they will be invoking the dispute resolution provisions of the PSCBC’s constitution.