2 August 2004: No 52/04

DOD AND SANDU ON SALARY NEGOTIATIONS IN THE MILITARY BARGAINING COUNCIL     (PART 1)

Having formally received SANDU’s wage demands for the financial year 2004/ 2005, the position paper was studied in order to prepare a DOD reasoned response on each aspect.

It was evident that since the demands were complex, the different aspects impacted on each other and the overall effect of the wage demands would in all likelihood place the DOD personnel budget under serious strain.

The Department of Defence therefore met SANDU on 29 July 2004 in the Military Bargaining Council (MBC). The purpose of the meeting was to seek clarity concerning the demands before formally responding. The DOD expects SANDU to formally respond not later than 6 August 2004, to the following questions:

Annual salary Increment:

 Is there a particular rationale for demanding a 9.5% annual salary increment when this is almost 5% above the CPIX for the past year?

 Closing the Wage Gap with

SAPS:

 Is it SANDU's intention to close the SANDF/SAPS wage gap based on the 2003/2004 pay scales or the 2003 pay scales and those presently being negotiated by the SAPS?

 Does SANDU appreciate that the impact of closing this wage gap will also have a knock-on effect on all the pay incentives and allowances that are directly linked to the basic salary scale?

 Has SANDU made calculations to determine the financial effect of this particular demand?

 Termination of Rank & Leg Promotions; Pay Progre-ssion and Performance Incentive System:

 Does SANDU appreciate that the administrative arrangements to rectify Rank & Leg promotions of affected SANDF members are under way, and that this matter is in fact independent of any general wage demands?

 Does SANDU distinguish between Performance Incentive System and Performance Appraisal System in this particular wage demand?

 What is SANDU's under-standing of a remuneration strategy?

 Housing

 What is the amount of the housing allowance for all SANDF members envisaged by SANDU?

 Is the latter amount directly linked to a bond repayment of R200, 000 as proposed by       SANDU?

 Should this housing allowance also be paid to SANDF members who are voluntarily residing in SANDF accommodation?