Update Report on the 2009 Wage Negotiations

21 August 2009

The Public Service Co-ordinating Bargaining Council (PSCBC) resumed on Monday 17th August 2009 after the Employer failed to table its counter-proposal on Thursday, 13th August 2009 as agreed.

The employer tabled its offer but Labour felt it didn’t fully address their demands and asked to be given time to do further analysis and consultation. Labour also urged the employer to come up with a revised and an improved offer. Council will resume on Monday, 31 August.

The Employer’s initial offer included the following:

  • The sliding scale as follows:
    • Levels 1 - 3 = 10%
    • Levels 4 - 6 = 9%
    • Levels 7 - 12 = 8%
  • This would translate to approximately 8,5% across the board, which is also inclusive of 2% shortfall emanating from Resolution 1 of 2007. In real terms the offer translates to 0,5% as against the inflation rate of 6%.
  • The implementation date would be 1st July 2009.
  • This would be a 2-year multi-term agreement (2009/2010 and 2010/2011).

Labour noted the Employer’s offer and indicated the following:

  • That it does not address itself to the demands of labour.
  • That the Employer’s interpretation of Resolution 1 of 2007 is wrong. 2007 July pay and April 2008 would be paid in 2009 as a shortfall

On Tuesday, 18th August 2009, Joint Mandating Committee made up of presidents and secretaries of the Unions met and resolved as follows:

  • That the envisaged Public Sector Summit be postponed to the 1st quarter of the year 2010.
  • That the Collective Bargaining Desks of various affiliates should convene and analyze the Employer’s offer with a view of consolidating a comprehensive response.
  • The JMC would reconvene on Tuesday, 25 August 2009 to look into the comprehensive response in preparation for tabling at the Council.
  • On Wednesday, 26 August the Principals of both COSATU (JMC) and the Independent Labour Caucus (ILC) would meet to discuss and develop a joint response to the Employer’s offer. This will be presented to the Council of the 31st August 2009.