SOUTH AFRICAN REVENUE SERVICE
MEDIA RELEASE NUMBER 41 OF 2001

25 AUGUST 2001

WAGE NEGOTIATIONS AT SARS

The South African Revenue Service has, for the past few weeks, been involved in wage negotiations with the Public Servants Association (PSA), and National Education, Health and Allied Workers' Union (NEHAWU).

The initial position of the unions was a 15% increase. The initial position of SARS was CPIX (6,4%) minus 1% which would be awarded to staff on the basis of performance.

The SARS position was changed to 6,4% plus R850 per individual. After further discussions SARS improved its offer to 7% plus the introduction of a performance management system. The union position was 9%.

Today, SARS made a final offer of 7,75% plus the following benefits:

• Increased maternity leave from 13 to 16 weeks;
• Increased paid study leave from 12 to 16 days for certain courses sponsored by SARS;
• The third installment of the housing allowance;
• Medical allowance for all employees, phased in over a three-year period;
• Car allowances from 1 October 2001 for those who spend most of their time in the field;
• An Interim Performance Management system for the last six months of this financial year.

Late this evening, the CCMA Commissioner has made a proposal which the unions and SARS were asked to consider. The SARS management will make its final decision on tomorrow morning.

SARS management will continue to make every effort to avert a strike. At the same time SARS offices, both Receivers of Revenue and Custom, will continue to operate even if there is a strike. SARS managers throughout the country have made adequate arrangements to ensure that the public is served.

ISSUED BY THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE
PRETORIA