The Eastern Cape Development Corporation (ECDC) has extended an apology to all its stakeholders, clients and customers who may be inconvenienced by the staff strike which commenced on Wednesday 9 September, 2015 due to a breakdown in salary increase negotiations between management and trade union SACCAWU.
The strike comes after a conciliation effort by the Commission for Conciliation, Mediation and Arbitration (CCMA) broke down with the commissioner having no option but to issue a certificate of exemption of non-resolution.
A further attempt at mediation was held today 16 September, 2015 with a Senior Commissioner from the CCMA. Unfortunately, the union accused the Senior Commissioner of being biased and requested another Senior Commissioner be assigned. ECDC is therefore awaiting a new commissioner to be assigned and the date of such mediation meeting.
While the Corporation has indicated to the union its willingness to continue with negotiations, it has consistently and in good faith communicated its inability to meet the current demand of 9.3% across the board salary increase coupled with a 25% increase in the staff housing allowance, i.e. increase from 20% of salary to the current demand of 25% of salary.
This demand equates to an effective annual adjustment of 13.4% on total cost to company. It should be appreciated that ECDC operates on a cost to company basis with the across the board adjustment also applied to allowances such as the housing allowance, i.e. these allowances have effectively increased on an annual basis. Management is currently offering an across the board