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Salary negotiations for the 2001/2004 increase began on the 5th of June 2001. On the 25th of September 2001, conciliation began at the Public Service Co-ordinating Bargaining Council and concluded on 1 October 2001.

Government as employer tabled a revised package covering the following:

An increase in the personnel expenditure envelope through the creation of 20 000 jobs in the following sectors: correctional services, health, safety and security and home affairs. These jobs will cost the state approximately R1.6 billion each of the three years. The jobs will be permanent and sustainable.

Government has tabled a wage salary increase of a sliding scale tabled as follows:

* Level 1 - 8%
* Level 2&3 - 7%
* Level 4-12 - 6,5%

This will constitute an increase of R5,009 billion to the current wage bill.

All employees will receive a once-off payment of R850 as part of the settlement for the financial year 2001, this will cost the employer R941 million which constitute an additional 1,52% of the basic wage bill.

Further, the 1% of the basic wage bill will be utilised as payment for pay progression which will be implemented in April 2002, this will constitute approximately R800 million with carry through effects.

A development of a framework to address the scarce skills flight in the public service.

Acting allowance will be paid in the following instances for:

* Funded and vacant positions; and
* Non-funded positions will be determined by Executing Authorities.

The resolution includes a multi-year provision which aims to stabilise bargaining process and allow focus on the transformation of the public service.

The annual wage increase for 2002/2003 financial year shall be CPI-X will be from May-May. Should the threshold on the CPI-X be lower than 4% or higher than 7,5% for the respective periods, negotiations will be re-opened.

The medical aid task team in the PSCBC shall prioritise an agreement for the provision of a compulsory basic health care to address the needs of employees who do not benefit from any medical assistance.

All transformation matters will be aligned to the Pietersburg agreement and consultation will take place at departmental and sector level.

At this stage, the state as an employer spends R92 billion on salaries and conditions of service. Government spending is 27%-28% of the GDP and of this 10,3% is used on personnel costs. The new package proposed above is going to cost the state an additional R7,55 billion.

Enquiries: Tembela Kulu at (012) 314 7213 or 082 497 3220

Issued by: Department of Public Service and Administration, 2 October 2001