By Lehlohonolo Lehana.
The Department of Public Service and Administration (DPSA) says in keeping with the resolution of the 2022 Public Service Summit of aligning the budget process of government with the wage negotiations, the employer initiated wage negotiations with organised labour.
The negotiations commenced at the Public Service Council Bargaining Council (PSCBC) on 17 February 2023, with the majority of the trade unions (SADTU, PSA, NAPTOSA and HOSPERSA) constituting 53.9% in the public service attending the first meeting,” the department said on Friday.
The initial offer tabled on 17 February 2023 by the employer was informed by the following principles:
– The quest for a multi-term agreement to bring stability to the public service and allow for proper planning and implementation of service delivery programmes by government.
– Translation of the non-pensionable cash gratuity into the baseline to allow the pensions of public servants to grow significantly and improve their notches.
– Conclusion of negotiations by the end of March 2023 to allow for the smooth transition from a non-pensionable gratuity to a pensionable increase that will be implemented with effect from the beginning of the financial year on 1 April 2023.
The employer tabled the last and final offer for the financial year 2023/24 on 17 March 2023 for consideration by the unions.
Employer’s final offer
The employer’s final offer tabled on 17 March 2023 at the PSCBC entailed the following provisions:
– A two-year multi-term agreement for the financial year 2023/24 and financial year 2024/25.
– Pensionable salary increases of 7.5% for employees on levels 1 – 12 packaged as follows:
a) Translation of the current non-pensionable cash gratuity at the value of 4.2% on the baseline.
b) A nominal increase of 3.3% across the board.
c) The pay progression of 1.5% for all qualifying public servants shall continue, as per the existing dispensation across all departments.
The department stressed that the non-pensionable cash allowance will be “translated into the pensionable increase on the baseline with effect from 1 April 2023, without disadvantaging any employee in terms of the cash net effect into the pocket”.
This translation, the department said, will benefit employees in that it:
• Contributes towards the growth of the pension of employees;
• Improves the notches of employees;
• Increases the base for any future increases, and
• It is also sustainable and permanent.
“It should be clarified that there is no agreement with the public sector unions that the cash gratuity will continue indefinitely,” the department said.
Clause 3.2 of Resolution 1 of 2021 states that: “The non-pensionable cash allowance will be paid backdated from 1 April 2021 to 31 March 2022”.
Clause 3.3 of the same Resolution 1 of 2021 states that: “If no new agreement is reached by 31 March 2022 on the 2022/2023 salary adjustment, this non-pensionable cash allowance shall remain in force until a new agreement is entered into by the parties”.
“This position by the employer was communicated in advance to the trade unions through DPSA Circular 50 of 2022, that the cash allowance shall be paid until 31 March 2023.
“Parties at the PSCBC have reached an agreement, therefore clause 3.3 of Resolution 1 of 2021 shall be complied with fully without disadvantaging any employee,” the department said.