Report Of The Employment Conditions Commission On The Investigation Into A Sectoral Determination For The Forestry Sector

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REPORT OF THE EMPLOYMENT CONDITIONS COMMISSION ON THE INVESTIGATION INTO THE REVIEW OF THE MINIMUM WAGES AND CONDITIONS OF EMPLOYMENT IN THE PRIVATE SECURITY SECTOR.

CHAPTER ONE 5

1. INTRODUCTION 5

1.1. BACKGROUND TO THIS INVESTIGATION 5

1.2. WAGE NEGOTIATIONS IN THE SECTOR 7

1.3. TERMS OF REFERENCE 8

1.4. METHODOLOGY 8

1.4.1. PHASE ONE – INFORMATION GATHERING 8

1.4.2. PHASE TWO – CONSULTATION WITH STAKEHOLDERS 9

1.4.3. PHASE THREE – ECC PROCESS 10

1.4.4. PHASE FOUR- PUBLICATION OF THE SECTORAL DETERMINATION AMENDMENT 10

1.5. STRUCTURE OF THE REPORT 10

CHAPTER TWO 12

2. DESCRIPTION OF THE SECTOR 12

2.1. SECTOR DEMARCATION 12

2.2. EMPLOYMENT IN THE SECTOR 12

2.3. PRIVATE SECURITY GROWTH IN SOUTH AFRICA 13

2.4. CHALLENGES IN THE PRIVATE SECURITY SECTOR 15

2.4.1 Increase in PSIRA annual fees 15

2.4.2 Regulatory Challenges 15

2.4.3 Unregistered and non-compliant 16

CHAPTER THREE 17

3. DISCUSSION AND PROPOSALS 17

3.1 Minimum Wages 17

3.1.1 Employee’s views 18

3.1.2 Employers views 19

3.1.3 Bargaining forum agreement 20

3.9.2 Departmental recommendations 21

3.2 Premiums 22

3.3 Special Allowance 23

3.3.1 Bargaining Forum Agreement 23

3.3.2 Departmental recommendations 23

3.6 Annual increase 24

3.6.1 Employee’s views 25

3.6.2 Employers views 25

3.6.3 Bargaining Forum agreement 25

3.6.4 Departmental recommendations 26

3.7 Annual bonus 26

3.7.1 Employee’s views 26

3.7.2 Employers views 26

3.7.3 Bargaining Forum Agreement 27

3.7.4 Departmental recommendations 27

3.8 Demarcation 27

3.8.1 Employee’s views 28

3.8.2 Employers views 28

3.8.3 Bargaining Forum Agreement 28

3.8.4 Departmental recommendations 29

3.9 Other Conditions 29

3.9.1 Housing and HIV/AIDS 29

3.9.2 Hours of Work 29

3.10 Other Issues 29

3.10.1 Enforcement and Inspection 29

3.10.2 Government Departments 30

3.10.3 Medical Aid 30

3.10.4 Transfer Allowance 30

3.10.5 Housing Allowance 30

3.10.6 Departmental recommendations 31

CHAPTER FOUR 32

4 EVALUATION IN TERMS OF ECC CRITERIA 32

4.1 Alleviation of poverty and impact on cost of living 32

4.3 Ability of employers to carry on their business successfully and operation of small businesses 33

4.3 Impact on current employment and the creation of employment 34

CHAPTER FIVE 35

5. ECC RECOMMENDATIOND 35

5.1. Minimum Wages 35

5.2. Premiums 37

5.2.1. Grade D Premiums 37

5.2.2. Area 3 Premiums 37

5.3. Special Allowance 37

5.4. Night Shift Allowance 38

The Commission recommended that the night shift allowance should be increased by R0.50 as stipulated in the National Bargaining Forum agreement. 38

5.5. Long Servicer 38

5.6. Annual Increase 38

5.7. Annual Bonus 38

5.8. Demarcation 39

5.9. Other Conditions 39

TABLES

Table 1: Signatories to NBF 6

Table 2: Schedule of Public Hearings: Dates Venues & Attendance 9

Table 3: Demarcated Areas in the Private Security Sector, South Africa 12

Table 4: Number of Security Businesses and Security Officers 13

Table 5: Area 4 to Area 3 increase 17

Table 6: Satawu Free State minimum wage proposals 18

Table 7: Minimum wage proposals NBF 20

Table 8: Recommended Grade D premiums 22

Table 9: Recommended Area 3 premiums 22

Table 10: Recommended special allowance 23

CHAPTER ONE

1.  INTRODUCTION

In accordance with Section 54(3) and (4) of the Basic Conditions of Employment, Act 75 of 1997 (BCEA), the Employment Conditions Commission (ECC) has to present the Minister with a report on the investigation into the review of minimum wages and conditions of employment after conducting an investigation. The ECC has concluded its investigation into the Private Security Sector, South Africa and therefore has pleasure in submitting its recommendations to the Minister.

1.1.  BACKGROUND TO THIS INVESTIGATION

The Sectoral Determination 6: Private Security Sector, South Africa was published in the Government Gazette dated 30th November 2001 and provisions in respect of minimum wages became applicable on 10th December 2001. The last amendment to the determination was published on 25 August 2009 in Government Notice No: R871 Government Gazette No: 32524 prescribing minimum wages which will lapse on 30 August 2012.

On 11 November 2011 the Minister published a notice announcing the intention to review the Private Security Sectoral Determination.

The sector has no Bargaining Council but has a forum with a constitution that bargains collectively on conditions of employment and wages. The parties to this forum are, however, not representative of the entire industry. Since the promulgation of SD 6, the practice has been that the parties first negotiate in a formally constituted negotiating forum. The agreement reached in the bargaining forum then forms the basis of discussion in the ECC process where it is tested against the criteria as set out in the Basic Conditions of Employment Act (BCEA) such as:

·  The ability of employers to carry on their business successfully

·  The operation of small, medium or micro-enterprises

·  The cost of living

·  The alleviation of poverty

·  Wage differentials and inequality

·  The impact of current or the creation of employment.

The agreement therefore serves as an input document in the investigation process. As in other sectors, the ECC is always eager to consider as much as possible agreements reached through voluntary collective bargaining to promote collective bargaining.

Negotiation process

In its inception, the National Bargaining Forum for the Private Security Sector (NBF), concluded a National Framework Agreement (NFA) which sets out the rules of engagement between the parties during their negotiations. Such The parties to the NBF have changed during the past three years, but the main role players remain the same.

Prior to the establishment of the NBF the CCMA as the facilitator of negotiations at the NBF conducted a census in respect of representation amongst both Labour and Employers. This Private Security Sector Verification was conducted amongst 18 trade unions and 4 employer organizations which were signatory to the NBF. The result of the verification process revealed that Trade Unions, collectively, were having 80,828 paid up members and the employer caucuses were able to prove a total of 135,020 employees in the employ of their members..

The following table reflects the number of members by each organization who are signatories to the NBF and the number of seats which organization have on the NBF.

Table 1: Signatories to NBF

Trade union / Membership / Seats / %
SATAWU / South African Transport and Allied Workers Union / 34,510 / 5 / 48%
KAWU / Kungwini Amalgamated Workers Union / 12,482 / 2 / 17%
NASUWU / National Security and Unqualified Workers Union / 9,539 / 2 / 13%
PTAWU / Professional Transport and Allied Workers Union / 7,031 / 1 / 9%
SANSAWF / South African Security and Allied Workers Union / 5,691 / 1 / 8%
DUSWO / Democratic Union of Security Workers / 5,210 / 1 / 7%
TOTAL / 74,463 / 12 / 100%
Employer Organizations / Employees / Seats / %
SSEO / Security Services Employers Organisation / 80,932 / 7 / 60%
SANSEA / South African National Security Employers Association / 52,883 / 4 / 39%
COSAPS / Congress of South African Private Security / 1,206 / 1 / 1%
Totals / 135,020 / 12 / 100%

All three participating employer organisations were represented at the negotiation table. In terms of the bargaining framework agreement, a threshold of 5000 members is required for trade unions to be entitled to a seat at the 12 a-side bargaining table.

Nine non-qualifying trade unions were granted observer status, which does not grant them seats as they do not have enough representation, however they had fully participated in the process. The signing or non signing of the NBF agreement by these trade unions has no bearings on the outcome of the agreement at caucus meetings. They trade unions granted observer status were:

1)  South African Private Security Workers Union (SAPSWU)

2)  Security Officers Civil Rights and Allied Workers Union (SACRAWU)

3)  South African Cleaning Security and Allied Workers Union (SACSAWU)

4)  South African Cleaning Security Workers Union (UPSWU)

5)  Protectors Workers Union (PROWU)

6)  Food, Cleaning and Security Workers Union (FOCSWU)

7)  National Democratic Change and Allied Workers Union (NDCAWU)

8)  Workers Equality Support of South Africa (WESUSA)

9)  Hotel, Commercial Catering and Allied Workers Union of South Africa (HOTELLICA)

10) United Association of South Africa (UASA)

11) Abanqobi Workers Union (AWU)

1.2.  WAGE NEGOTIATIONS IN THE SECTOR

The parties in the Private Security Sector signed an agreement on the 2nd April 2012. The agreement was signed by three (3) organisation form the employers and eleven (11) from the trade union who bargained on issues of wages and other conditions of employment. The bargaining forum meetings were facilitated by two Senior CCMA Commissioners. The following trade unions did not sign the agreement:

1)  South African Transport and Allied Workers Union (SATAWU)

2)  Food, Cleaning and Security Workers Union (FOCSWU)

3)  Workers Equality Support of South Africa (WESUSA)

4)  Hotel, Commercial Catering and Allied Workers Union of South Africa (HOTELLICA)

However the South African Transport and Allied Workers Union (SATAWU) forwarded their submission in relation to the issues of disagreement at the NBF.

In terms of the NFA, the majority of the “eligible” trade unions, representing 7 of the 12 Labour seats, accepted the agreement, together with the employers block, making the collective agreement binding on all parties.

The issues which were agreed on were tabled as follows:

·  the basic salaries for Private Security sector;

·  Grade D and Area premiums,

·  Family responsibility leave,

·  Annual Leave,

·  Annual bonus,

·  Special Allowances;

·  Housing and HIV/AIDS; and

·  Night shift allowance.

1.3.  TERMS OF REFERENCE

The Department published a notice in the Government Gazette No 34784 of 11th November 2011 under Government Notice No. 981. The notice called upon interested parties to send written representations to the Department within 30 days of publication of the notice. The terms of reference for the investigation into the review of minimum wages and conditions of employment in the Private Security Sector were set out as follows:

‘To review wages and conditions of employment in the Private Security Sector, South Africa.’

1.4.  METHODOLOGY

A four-phased project framework was developed for this investigation, as follows:

1.4.1.  PHASE ONE – INFORMATION GATHERING

The purpose of the first phase was to address the administrative aspects of the investigation and identify areas of focus. The administrative aspects dealt with in this phase included, in particular, the publication of a notice in the government gazette as required by section 52(3) of the BCEA, the processes to ensure that the appropriate legislation was complied with in respect of this investigation.

As part of the information gathering process, the Department invited public comments through a notice published in the Government Gazette No 34784 of 11th November 2011. Interested parties had 30 days to submit written representations to the ECC. Only the bargaining forum submitted written representations in response to the notice.

1.4.2.  PHASE TWO – CONSULTATION WITH STAKEHOLDERS

Public hearings were held across nine provinces, and between two to three areas in a province were visited. Public hearings commenced on 18th April 2012 until 25th May 2012. A total number of 29 public hearings sessions were held countrywide. When the public hearings commenced the parties had already signed an agreement and during the public hearings the signed agreement formed the basis of discussions.

Table 2: Schedule of Public Hearings: Dates Venues & Attendance

Area / Dates / Venue & Address / Total Number of Empoyers / Total Number of Employee’s
Mpumalanga
Nelspruit / 18/04/2012 / Orion Hotel / 7 / 12
Ermelo / 19/04/2012 / Ella De Bruin Hall / 6 / 2
Witbank / 20/04/2012 / Department of labour / 40 / 28
Gauteng
Johannesburg / 16/04/2012 / Department of Labour / 5 / 16
Bronkhorstspruit / 17/04/2012 / Municipality Bronkhorstspruit / 3 / 53
Krugersdorp / 18/04/2012 / Department of Labour / 3 / 0
Kempton Park / 19/04/2012 / Kempton Park Labour Centre / 1 / 21
Vereneeging / 20/04/2012 / Kopanong Hospital / 4 / 18
Northern Cape
Upington / 25/04/2012 / Waterfront Guest Centre / 12 / 13
Kimberley / 26/04/2012 / Depart of Labour Boardroom / 1 / 7
North West
Rustenburg / 24/04/2012 / Rusternburg Civic Centre / 0 / 0
Klerksdorp / 25/04/2012 / Ngwenya Hotel & Conference / 8 / 13
Mafikeng / 26/04/2012 / Gardern View Lodge / 4 / 15
Western Cape
Cape Town / 09/05/2012 / Department of Labour / 8 / 2
Mosselbay / 10/05/2012 / D’Almeida Library Hall / 4 / 11
George / 11/05/2012 / Department of labour / 7 / 9
KwaZuluZ Natal
Durban / 09/05/2012 / La’vita / 11 / 10
Richard's Bay / 10/05/2012 / Imbizo Conference Centre / 12 / 17
Newcastle / 11/05/2012 / Mojuba Lodge / 15 / 0
Limpopo
Thohoyandou / 16/05/2012 / Peermont Metcourt Khoroni / 16 / 56
Tzaneen / 17/05/2012 / Fairview River Lodge / 4 / 23
Polokwane / 18/05/2012 / Mosate Lodge / 14 / 59
Eastern Cape
Port Elizabeth / 16/05/2012 / Department of Labour / 20 / 57
East London / 17/05/2012 / Department of Labour / 03 / 24
Umtata / 18/05/2012 / Savoy Hotel / 5 / 17
Free State
Bloemfontein / 23/05/2012 / Protea Hotel / 9 / 65
Bethlehem / 24/05/2012 / Frontier Hotel / 18 / 35
Welkom / 25/05/2012 / Gold Guest and Conference / 10 / 5
Total / 250 / 588

The hearings thus provided information from a total of 250 employers and 588 employees. It should further be noted that the representation was both from individual employees and employers as well as those representing organised business and labour.

After the public hearings the Department received submissions from the following:

·  SATAWU;

·  A combined submission from the following employers: Maluti Security, Wulf Alarms and Cybko;

·  Department of Labour Inspectors; and

·  Individual employers and employees.

1.4.3.  PHASE THREE – ECC PROCESS

During this stage, the Employment Conditions Commission (ECC) deliberated on the consolidated report prepared by the Department on the basis of the written submissions forwarded to the Department and inputs captured during the public hearings.

1.4.4.  PHASE FOUR- PUBLICATION OF THE SECTORAL DETERMINATION AMENDMENT

This phase will see the publication of amendments to the sectoral determination in the Government Gazette, once approved by the Minister and subsequent awareness-raising.