NN 33/2024
GEMS ADJUSTMENT, SALARY NEGOTIATIONS
The SAOU received numerous enquiries regarding the increase of GEMS premiums. We draw your attention to the following:
- The increase of medical schemes’ premiums is not subject to collective bargaining and can thus not be renegotiated in the Public Service Coordinating Bargaining Council (PSCBC). The SAOU cannot mislead our members and create false hope based on unfounded information.
- The Medical Schemes Act stipulates that the GEMS Board of Trustees determines the annual premium increase based on the financial position of the scheme as determined by the following factors namely, the claims ratio, the particular option’s richness of benefits and the level of the scheme's reserve fund.
- The PSCBC was during 2024 in numerous discussions with GEMS in to persuade GEMS for a reasonable and workable increase. However, an agreement could not be reached, as GEMS is regulated by the Medical Schemes Act.
- On 2 December 2024, GEMS communicated the intended premium increases to each GEMS member, because the choice of option, within the scheme must be exercised before 1 January 2025, as required by the Medical Schemes Act.
Where do we currently stand with the medical employer subsidy?
The medical employer subsidy is part of the 16 formal demands of labour in the 2025/2026 negotiation process, because it is contained in a collective agreement. It will therefore not be known yet and will only be implemented when the negotiations are concluded.
What is the bargaining claim of labour toward the medical employer subsidy?
Labour's demand is that the urban rather than rural Medical Price Index (MPI) plus 4%, be implemented as the increase of the medical employer subsidy.
The employer is adamant that they will only comply with the current collective agreement. This involves an increase based on the MPI of the previous financial year.
In view of the increased medical aid premium announcement, this stance is not acceptable for labour and is considered one of the key points in the negotiations.
LATEST ON SALARY
NEGOTIATIONS
What are the demands on the negotiators' table?
Labour has put 15 demands on the table, 7 of which can be resolved through processes with current structures. Common to all labour parties within the PSCBC are the first 4 demands namely:
- Salary adjustment. Labour demanded 7.5% and the Employer offered an increase linked to the Consumer Price Index (CPI) which was agreed at 4.7%.
- Term of agreement. Labour demands a one-year term (2025/2026) and the Employer offers a three year term. The employer proposes an increase for 2026/2027 and 2027/2028 linked to CPI with safeguard clauses for the excessive fall and increase in the CPI in the last two years of the agreement.
- Public Service Worker Housing Scheme (GEHS). Labour is demanding an increase from R1,784 per month to R2,000 per month. An increase of R216 per month. Employer offers R1,900 per month, but with additional conditions that are not acceptable to Labour.
- Medical aid subsidy. Labour is demanding an urban MPI plus a 4% increase to the medical employer subsidy, while the employer is adamant that the current collective agreement, which is an increase from MPI from the previous financial year, is suffice.
Where do we currently stand with the process?
As mentioned above, organised labour obtained a consolidated mandate to claims on 29 November 2024.
All parties met on 4 December 2024 and will meet again on 12 December 2024. All parties agreed to conclude the process by 20 December 2024.
In conclusion
The negotiation process is long and laborious which challenges everybody`s patience.
As the medical employer subsidy plays an integral part in the negotiation process, we advise all members to make timely and adequate provision for the GEMS premium increase for the first three months of 2025.
We'll keep you posted as events unfold.
2024/12/05
GEMS AANPASSING, SALARISONDERHANDELINGE
Verskeie navrae insake die premieverhoging vir GEMS-lede is deur die SAOU ontvang. Die volgende word onder u aandag gebring:
- Die premieverhoging is nie onderhewig aan enige kollektiewe onderhandelinge nie en kan nie deur onderhandelinge in die Staatsdiens Koördinerende Bedingingsraad (PSCBC) heronderhandel word nie. Die SAOU kan nie ons lede mislei deur valse hoop te skep nie.
- Die Wet op Mediese Skemas bepaal dat die GEMS Raad van Trustees ooreenkomstig die finansiële posisie van die skema besluite oor die toepaslike opsie se verhoging moet neem met inagneming van die betrokke opsie se eiseverhouding, die rykheid van voordele en die reserwevlak van die skema.
- In 2024 was die PSCBC meer as een maal in gesprek met GEMS om vir ‘n meer billike en werkbare verhoging te oorreed. Daar kon egter nie tot ‘n vergelyk kom nie, aangesien GEMS deur die Wet op Mediese Skemas gereguleer word.
- Op 2 Desember 2024 het GEMS die beoogde premieverhogings aan elke GEMS-lid gekommunikeer, omdat die keuse van opsie, binne die mediese skema, uitgeoefen moet word voor 1 Januarie 2025, soos wat die Wet op Mediese Skemas vereis.
Waar staan ons tans met die mediese werkgewersubsidie?
Die mediese werkgewersubsidie is deel van die 16 formele eise van arbeid in die onderhandelingsproses van 2025/2026 omdat dit in ‘n kollektiewe ooreenkoms vervat is. Dit sal dus nie nou al bekend wees nie en sal eers geïmplementeer word wanneer die onderhandelinge afgehandel is.
Wat is die onderhandelingseis van arbeid jeens die mediese werkgewersubsidie?
Arbeid se eis is dat die stedelike eerder as die plattelandse Mediese Prys Indeks (MPI) plus 4%, as die verhoging van die mediese werkgewersubsidie geïmplementeer word.
Die werkgewer volstaan by die huidige kollektiewe ooreenkoms. Dit behels `n verhoging gebaseer op die MPI van die vorige finansiële jaar.
In die lig van die verhoogde mediese fonds premies wat aangekondig is, is dit nie vir arbeid aanvaarbaar nie en word dit as een van die kern punte in die onderhandelinge bestempel.
STAND VAN SALARISONDERHANDELINGE
Wat is die eise op die onderhandelaars se tafel?
Arbeid het 15 eise op die tafel gesit, waarvan 7 deur prosesse binne bestaande strukture opgelos kan word. Gemeenskaplik tot alle arbeidpartye binne die PSCBC is die eerste 4 eise naamlik:
- Salarisaanpassing. Arbeid eis 7.5% en die Werkgewer bied ‘n verhoging aan wat gekoppel is aan die Verbruikers Prys Indeks (VPI) wat ooreengekom is op 4,7%.
- Tydperk van ooreenkoms. Arbeid eis ‘n een jaar termyn (2025/2026) en die Werkgewer bied ‘n drie jaar termyn aan. Die werkgewer stel ‘n verhoging voor wat vir 2026/2027 en 2027/2028 gekoppel is aan VPI met beskermingsklousules vir die uitermatige daling en verhoging van die VPI in die laaste twee jare van die ooreenkoms.
- Staatsdienswerkers Behuising Skema (GEHS). Arbeid eis ‘n verhoging vanaf R1,784 per maand na R2,000 per maand. ‘n Verhoging van R216 per maand.
- Werkgewer bied R1,900 per maand aan, maar met addisionele voorwaardes wat nie vir Arbeid aanvaarbaar is nie.
- Mediese voorsorg. Arbeid eis ‘n stedelike MPI plus 4% verhoging tot die mediese werkgewersubsidie, terwyl die Werkgewer volstaan by die huidige kollektiewe ooreenkoms wat `n verhoging van MPI van die vorige finansiële jaar is.
Waar staan ons tans met die proses?
Soos hierbo genoem, het georganiseerde arbeid op 29 November 2024 ‘n gekonsolideerde mandaat tot eise bekom. Alle partye het op 4 Desember 2024 ontmoet en sal weer op 12 Desember 2024 bymekaar kom.
Alle partye het ooreengekom om die proses teen 20 Desember 2024 af te handel.
Ter afsluiting
Die onderhandelingsproses is lank en moeisaam en almal se geduld word hierdeur getoets.
Aangesien die mediese werkgewersubsidie `n integrale deel speel in die onderhandelingsproses, raai ons alle lede aan om vroegtydig voldoende voorsiening te maak vir die GEMS-premieverhoging vir die eerste drie maande van 2025.
Ons hou u op hoogte soos wat die gebeure ontluik.
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