Batho Pele House, PretoriaThursday, 29 July 2010In the same manner that the government met with representatives of Labour Unions on 11 June 2009 to discuss and agree on the implementation of the Occupation Specific Dispensation (OSD) in terms of Resolution 1 of 2007, the two parties are currently in the process of deliberations on what government considers to be the final offer on the salary negotiations for the 2010/2011 term. The offer being tabled by government emanates from continued consultations with the state treasury and has been finalised with the interest of all South Africans in mind. The government therefore wishes to appeal to organised labour to understand the economic challenges that frame the 2010/2011 wage negotiations and consider the potential harm continued disagreements may have on the national spirit. The current positive national environment contributed to the country by the World Cup is one that the government hopes to continue.The initial demand of organized labour was for a 11% across the board salary increase with effect from 1 April 2010, an increase in the housing allowance to R1650 per month and the equalization of the medical aid benefit to non-GEMS (Government Employees Medical Scheme). This would have cost government approximately R38.6 billion. The revised demand of labour is for an 8.6% salary increase and an increase of the housing allowance to R1000 per month. The total approximate cost for the revised demand of organized labour amounts to R22.9 billion. The current offer of the employer is for a salary increase of 6.5% with effect from 1 July 2010, and an increase of the housing allowance from R500 to R620 per month. This would cost government approximately R11.2 billion over a 9 month period for this financial year. To implement this offer, government requires additional funding of R3.7 billion to the current wage bill. Another matter at the centre of the dispute is the implementation date for the settlement. Organised Labour is demanding that all salary adjustments should be effected from April 2010. The State, however, is of the opinion that the practical implementation arrangements of this matter will be the subject of the second phase of negotiations to commence in September 2010. The Government is committed to continued engagements until a mutually agreeable offer is signed for implementation. As has been the practice, Government will continue to demonstrate visibility in its interactions with all public servants. On occasion, platforms of engagements between public servants and the Minister for Public Service will also be availed as government seeks a mutually beneficial conclusion to the wage disputes. This programme of engagement will begin as soon as Friday, the 6th August, 2010.Issued by the Ministry for Public Service and Administration