MEDIA STATEMENT BY LABOUR ON IMPLEMENTATION OF 7% SALARY INCREASE:
Earlier this week it came to the attention of the trade unions in the PSCBC that the Employer intended to reduce the agreed salary increase of 7% to 6,4%. This is based on a provision in PSCBC Resolution 1 of 2012 that if the actual CPI for a period is lower than the projected CPI, the difference will be deducted from the salary adjustment of the following year. The projected CPI for 2014/15, on which the salary increase for 1 April 2014 was based, was 6,2%, whilst the actual average CPI for the period was 5,6% - leaving a shortfall of 0,6%.
As far as NAPTOSA and the other unions are concerned negotiations were concluded on 19 May 2015 on the understanding that there was a complete meeting of minds that employees would be receiving a salary adjustment of 7% on 1 April 2015, irrespective of what previous agreements might have determined.
The Employer’s action prompted Labour to call for an urgent PSCBC meeting on 1 June 2015 where it was decided that the Employer would halt the implementation of the 6,4%, as they had intended doing and to obtain an urgent legal opinion on the different interpretations of Labour and the Employer.
Labour subsequently met on 2 June 2015 to discuss the matter. The outcome of the meeting is contained in the attached joint media statement which clearly reflects the anger of the unions and the challenge to the Employer that if they fail to implement the 7%, Labour will have no option but to withdraw from the agreement.
It is hoped that sense will prevail from the side of the Employer.