REPORT OF THE EMPLOYMENT CONDITIONS ... · Web viewThe sector has no Bargaining Council but...

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ECC

PRIVATE SECURITY SECTOR

REPORT 2012

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........................................................................................................51.1. BACKGROUND TO THIS INVESTIGATION........................................................51.2. WAGE NEGOTIATIONS IN THE SECTOR...........................................................71.3. TERMS OF REFERENCE..........................................................................................81.4. METHODOLOGY.......................................................................................................81.4.1. PHASE ONE – INFORMATION GATHERING......................................................81.4.2. PHASE TWO – CONSULTATION WITH STAKEHOLDERS.............................91.4.3. PHASE THREE – ECC PROCESS..........................................................................101.4.4. PHASE FOUR- PUBLICATION OF THE SECTORAL DETERMINATION

AMENDMENT...........................................................................................................101.5. STRUCTURE OF THE REPORT............................................................................10

CHAPTER TWO.......................................................................................................................12

2. DESCRIPTION OF THE SECTOR.........................................................................122.1. SECTOR DEMARCATION......................................................................................122.2. EMPLOYMENT IN THE SECTOR.........................................................................122.3. PRIVATE SECURITY GROWTH IN SOUTH AFRICA......................................132.4. CHALLENGES IN THE PRIVATE SECURITY SECTOR..................................152.4.1 Increase in PSIRA annual fees..................................................................................152.4.2 Regulatory Challenges................................................................................................152.4.3 Unregistered and non-compliant...............................................................................16

CHAPTER THREE...................................................................................................................17

3. DISCUSSION AND PROPOSALS...........................................................................173.1 Minimum Wages.........................................................................................................173.1.1 Employee’s views........................................................................................................183.1.2 Employers views..........................................................................................................193.1.3 Bargaining forum agreement.....................................................................................203.9.2 Departmental recommendations...............................................................................213.2 Premiums.....................................................................................................................223.3 Special Allowance.......................................................................................................233.3.1 Bargaining Forum Agreement...................................................................................233.3.2 Departmental recommendations...............................................................................233.6 Annual increase...........................................................................................................243.6.1 Employee’s views........................................................................................................253.6.2 Employers views..........................................................................................................253.6.3 Bargaining Forum agreement....................................................................................253.6.4 Departmental recommendations...............................................................................263.7 Annual bonus...............................................................................................................26

2ECC Private Security Sector Report 2012

3.7.1 Employee’s views........................................................................................................263.7.2 Employers views..........................................................................................................263.7.3 Bargaining Forum Agreement...................................................................................273.7.4 Departmental recommendations...............................................................................273.8 Demarcation................................................................................................................273.8.1 Employee’s views........................................................................................................283.8.2 Employers views..........................................................................................................283.8.3 Bargaining Forum Agreement...................................................................................283.8.4 Departmental recommendations...............................................................................293.9 Other Conditions.........................................................................................................293.9.1 Housing and HIV/AIDS..............................................................................................293.9.2 Hours of Work............................................................................................................293.10 Other Issues.................................................................................................................293.10.1 Enforcement and Inspection......................................................................................293.10.2 Government Departments..........................................................................................303.10.3 Medical Aid.................................................................................................................303.10.4 Transfer Allowance.....................................................................................................303.10.5 Housing Allowance.....................................................................................................303.10.6 Departmental recommendations...............................................................................31

CHAPTER FOUR......................................................................................................................32

4 EVALUATION IN TERMS OF ECC CRITERIA..................................................324.1 Alleviation of poverty and impact on cost of living.................................................324.3 Ability of employers to carry on their business successfully and operation of

small businesses...........................................................................................................334.3 Impact on current employment and the creation of employment..........................34

CHAPTER FIVE.......................................................................................................................35

5. ECC RECOMMENDATIOND.................................................................................355.1. Minimum Wages.........................................................................................................355.2. Premiums.....................................................................................................................375.2.1. Grade D Premiums.....................................................................................................375.2.2. Area 3 Premiums........................................................................................................375.3. Special Allowance.......................................................................................................375.4. Night Shift Allowance.................................................................................................38The Commission recommended that the night shift allowance should be increased by

R0.50 as stipulated in the National Bargaining Forum agreement........................385.5. Long Servicer..............................................................................................................385.6. Annual Increase..........................................................................................................385.7. Annual Bonus..............................................................................................................385.8. Demarcation................................................................................................................395.9. Other Conditions...........................................................................................................39

TABLESTable 1: Signatories to NBF..........................................................................................................6Table 2: Schedule of Public Hearings: Dates Venues & Attendance............................................9Table 3: Demarcated Areas in the Private Security Sector, South Africa...................................12Table 4: Number of Security Businesses and Security Officers..................................................13Table 5: Area 4 to Area 3 increase..............................................................................................17Table 6: Satawu Free State minimum wage proposals................................................................18


Table 7: Minimum wage proposals NBF.....................................................................................20Table 8: Recommended Grade D premiums...............................................................................22Table 9: Recommended Area 3 premiums..................................................................................22Table 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 NBFTrade 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 1,206 1 1%


SecurityTotals 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 11 th 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 0Limpopo

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.

1.5. STRUCTURE OF THE REPORT

The report consists of the following chapters:

Chapter 2 of this report outlines the sector profile and current status of the South

African Private Security Sector.

Chapter 3 focuses on the consolidated written submissions, inputs received during

public hearings, and the Departmental proposals.


Chapter 4 will focus on the evaluation in terms of ECC criteria

and Chapter 5 focus on the recommendations of the Employment Conditions

Commission (ECC)


CHAPTER TWO2. DESCRIPTION OF THE SECTOR

The Sectoral Determination (SD 6): Private Security Sector, South Africa was published in the

Government Gazette of 30th November 2001 and provisions in respect of minimum wages

became applicable on 10th December 2001. The wages in this sector were set for a period of

three years, including annual increments, with the first set of amendments to the wages coming

into effect on 13th June 2003. The last set of wage increases were published on 25 th August 2009

and will lapse on 31st August 2012. Hence the review of the determination was necessary to set

new minimum wage levels for the period 2012 - 2015.

2.1. SECTOR DEMARCATION

The current sectoral determination categorizes South Africa into three areas namely Area 1; 2

and 3. The categories in relation to the areas are as follows:Table 3: Demarcated Areas in the Private Security Sector, South AfricaArea 1 Alberton, Bellville, Benoni, Boksburg, Brakpan, Camperdown, Chatsworth, Durban, Germiston,

Goodwood, Inanda, Johannesburg, Kempton Park, Krugersdorp, Kuils River, Mitchell’s Plain,

Nigel, Oberholzer, Paarl, Pinetown, Port Elizabeth, Pretoria, Randburg, Randfontein,

Roodepoort, Sasolburg, Simon’s Town, Springs, The Cape, Uitenhage, Vanderbijlpark,

Vereeniging, Westonaria, Wonderboom and Wynberg.

Area 2 Bloemfontein, East London, Kimberley, Klerksdorp, Pietermaritzburg Somerset West,

Stellenbosch and Strand.

Area 3

All other areas not mentioned under Area 1 and 2

2.2. EMPLOYMENT IN THE SECTOR

According to the Private Security Industrial Regulatory Authority (PSIRA) the number of

registered active security businesses has increased from 5491 (2001) to 2836 (2011),

representing a 35.84% increase whilst the number of registered security officers increased from

194 525 to 387 273, representing a 99.09% increase over the same period. The above figures

reveal that there is a steady and consistent increase in most of the categories of security

business and security officers. Table 3 below gives the number of security businesses and

security officers per category.


Table 4: Number of Security Businesses and Security Officers2009 2010 2011

Registered active armed response

business

2 083 2 721 2836

Registered active guarding

business

4 862 5 784 6324

Registered active security

business

6 392 7 496 8828

Registered active security officers 375 315 391035 411109

Registered inactive security

officers

940 330 1 070 267 1369765

Source PSIRA Annual report 2009/2010 & 2010/2011

It is important to note that Cash in Transit guards do not form part of the Security Sector

regulated by the Sectoral Determination.

2.3. PRIVATE SECURITY GROWTH IN SOUTH AFRICA

Reaching an annual turnover of R50 billion in 2011, from which the largest sector of the

security industry, namely the security guarding segment, has contributed R18 billion. The

Private Security Industry in South Africa is believed to be the largest in the world. The South

African Police Service, who spent roughly R161.5 million in 2009/2010 on private security

services (Sapa1, 2011) contributed to the growth of the private security industry.

Both the number of private security officers and private security companies have increased by

111.30% and 66.7% respectively, since 2001 to 2011, where a total number of 8 828 active

Private Security Companies are registered with PSIRA (Private Security Industry Regulatory

Authority). Moreover, the amount of security guards outnumbers SAPS officers by 2:1. “The

reason for this growing gap is because citizens do not perceive the police as adequate for their

safety needs,” says Lebone, South African Institute of Race Relations.

Thus, by analyzing the above statistics of a growing private security industry, it is of

significance to analyze the main factors that have led to the growth of the Private Security

Industry in South Africa. Firstly, changes in property associations have taken place, due to the

growth of mass private property i.e. urbanization, environmental factors and new building

demands related to social controls, and the need to secure these properties, where new 1 South African Press Association


uncertainties have been identified in the proclaimed ‘risk society’ of South Africa. Secondly,

growing trends towards the commoditisation of security have led to individuals purchasing their

own security such as physical security, use of armed response companies and counter

surveillance, and businesses acquiring security services from security companies, such as

security guarding, equipment, surveillance and armed response reaction, as a result of the

state’s perceived inability to guarantee security. Furthermore, the widespread presence of

cooperative systems are on the increase, whereby a community is secured not only by the

police, but also by private security patrols, metro police and neighbourhood-watch

organizations working to secure the same area.

What goes without saying is that violent crime has been the larger precursor in the growth of

the Private Security Industry. While South Africa’s murder rate has decreased, statistics show

that almost 16 000 murders took place within the last year, which is considerably higher than

that in most other parts of the globe2. House and business robberies are also a major concern for

the public. In addition, the role of the media in widely broadcasting violent crime has

influenced the growth of insecurity and fear of crime in the public eye.

The growth of the industry has also been an avenue of employment. The Security Sectoral

Education and Training Authority states that the Private Security Industry employs larger

numbers of workers than either SAPS , Correctional Services, Justice, Defence, Intelligence, or

the Legal Service industry. Growth in the sector can be seen by the increase in the enrolment in

private security training programmes by aspiring security guards.

To conclude, a broadening of the security market has taken place, in which the means to

counteract risks or threats to individual or business security constantly progresses and becomes

more specialized. Mulder articulates that “indirectly, the presence of security equipment,

security guards, and/or vehicles have an influence on the establishment concerned not only in

terms of ensuring safety and averting crime, but also are a visible guarantee that spaces and

individuals are being safeguarded by means of security guarding and patrolling duties.”

2 Beeld Newspaper dated Tuesday 4 October 2011


2.4. CHALLENGES IN THE PRIVATE SECURITY SECTOR

2.4.1 Increase in PSIRA annual fees

A concern for security firms, is that PSIRA (The Private Security Industry Regulatory

Authority) has recently released new regulations which drastically changed the regime of

regulatory fees which are payable by the security service providers and security officers to

PSIRA.

These fees have been increased by approximately 40%, which registered companies are obliged

to pay upfront on an annual basis, and no longer on a monthly basis, as published on The Skills

Portal. April 2012 marked the beginning of the Annual Fee Cycle. A Once-off fee of R84.00

will be deducted from each Security Officer employed and paid over to PSIRA on their behalf

by respective employers on or before 03 May 2012 while the employers contribution has

increased from R0.70 per employee per month to R7.00 per employee per month The next

Annual Fee will be payable by end of April 2013. These regulations are not only in complete

contrast with the government policy on the support of small and medium businesses in South

Africa, but also impact on larger security companies. A reason for the increase in these fees

could be that PSIRA is not funded by government and driven on the revenue derived from

security guards and companies levies.

2.4.2 Regulatory Challenges

PSIRA, is one of the most significant and authoritative protectors of the industry. The low

barriers to entry into the industry are a challenge. De Witt (2011) 3 articulates that there is a lack

of co-ordination between regulatory departments and inspectors and that the regulatory aspects

are often described too vaguely, rendering the implementation of these regulations as weak and

deficient. Furthermore, the Private Security Chamber Chairperson, Anna Maoko, believes that

the ratio is 95% to 5% in favour of private institutions, results in employers believing that

higher success can be achieved through on-the-job training. This is an indication of the

dissatisfaction of the quality of training being provided by the training institutions. Regular

demands for bribes are at the highest levels of the industry, from both clients and other role

players. Furthermore, De Witt is of opinion that Regulatory bodies need to act as arbitrators in

the contract process.

3 Alex de Witt (Omega Risk Solutions)


http://www.ifsecsa.com/EN/Content/Articles/At-a-crossroads-Is-the-private-security-industry-heading-for-a-crisis

2.4.3 Unregistered and non-compliant

Although many security companies are actively registered with PSIRA, there is a concern

regarding the number of unregistered and non-compliant security businesses that do not pay the

minimum wage to their workers, and provide services that are below standard.

2.4.4 Non South African Security Official

It was found that the majority of these non compliant companies are using foreign security

officials without relevant security training or PSIRA certificates. These foreign security

officials are then paid lower rates as compared to those prescribed by the Sectoral

Determination. PSIRA’s regulations state that only South African Identity Document holders

may be employed by registered security companies. It was recently discovered that non South

African’s are recruited by Private Security companies in the booming security industry.


CHAPTER THREEThe focus for the investigation, in line with the terms of reference, was to review minimum

wages, and conditions of employment in the Private Security Sector.

This chapter provides the current dispensation in the sectoral determination around minimum

wages and other related conditions of employment. In addition, it also deals with the inputs

from both employer and employees received during the public hearings, written inputs

submitted to the Department, proposals by the Department and recommendations of the

Commission.

3. DISCUSSION AND PROPOSALS

3.1 Minimum Wages

The current wages in this sector were set for a three year period. The current minimum wage

mechanism will lapse on the 31 August 2012 and therefore a new wage dispensation should be

in place by 01 September 2012. The current sectoral determination required Grade E security

officers to be incorporated into Grade D during 2010 and further that Area 4 be phased out in

2010. Table 5: Area 4 to Area 3 increaseArea 4 Area 3 Increase Percentage

1 September 2010to

31 August 2011

1 September 2011to

31 August 2012Grades Hourly Monthly Hourly Monthly %A R12.98 R2701 R14.59 R3005 12.36%B R11.23 R2337 R13.05 R2714 16.13%C R9.48 R1973 R10.75 R2235 13.38%D R8.79 R1828 R10.06 R2093 14.50%

2009 - 2010 2010 – 2011 %E R7.89 R1641 R8.79 R1828 11.40%

The above table indicates the percentage increases experienced when Area 4 was abolished in

all grades ranging from 12.36% to 14.50% while in terms of abolishing Grade E there was an

increase percentage of 11.40%.indicate a combined % during the year in which area4 was

phased out


3.1.1 Employee’s views

During the public hearings across the country the majority of the employees proposed an

increase of 8%. They also concur with the current system of a percentage increase for the

lowest category and a rand value increase for the other grades applied in addressing the issues

of increases. Three different proposals were put forward during the Johannesburg public

hearings. The first proposal of a R500 increase to the current R2 093 (Grade D) minimum wage

which amounts to an increase of 24%. Secondly an increase of 11% across the board to the

current minimum wage. Thirdly a minimum wage of R3500 for Grade D security officers,

which amounts to an increase of approximately 67%. The employee’s motivation on the above

mentioned proposals based on the following economic factors:

increased cost of living;

transport price increases;

rental increases; and

escalating food prices.

The employees also indicated that the current low level of the minimum wages is the cause of

security employee’s being debt-ridden. They further indicated that large numbers of security

officers are blacklisted and they resort to making loans from loan sharks due to the fact that

banks cannot offer them loans.

In Vereeniging employees opposed the utilization of the CPI to determine wage increases. They

argued that CPI does not address their economic situation. They further proposed that the

increase should be based on actual rand value. They indicated that a large portion of their wages

is spent on food, transport and rent. They also indicated that it should be noted that most of

security employees use two or three taxi’s to reach their workplace as most of these workplaces

are situated in industrial areas.

SATAWU in Nelspruit raised concerns about the current mechanism of negotiation in the NBF

as they alleged that an agreement that binds them is signed without them agreeing on other

issues. In line with the negotiating framework agreed to by the parties, they however supported

the increases as outlined in the agreement signed by the bargaining forum. In the Free State

province, SATAWU however disagreed on the wage proposal signed by the Bargaining Forum

and submitted the following wage proposals:Table 6: Satawu Free State minimum wage proposalsGrades Area 2Grade D R13.46 per hour


Grade C R15.38 per hourGrade B R17.30 per hourGrade A R18.26 per hour

Employees in other areas proposed an increase ranging between R3500.00 and R5000.00 per

month for Grade D. They indicated that private security officers protect properties worth of

millions hence they suggested an increase of a 14%. They indicated that their proposal is

informed by the value of properties they are protecting and that their lives are at risk since

criminals tend to target areas where there are expensive.

SATAWU, in their national submission, indicated that wage increase of 8,5% across the board

for the 1st year is too little in the light of the fact that security officers are paid on an hourly rate

and the increase does not affect the total cost to the company which means the total wage bill of

security service providers is less than 5%. A reference was made to Private Security Regulation

Authority (PSIRA) contract pricing structure for the period 1st September 2011 to 31st August

2012. SATAWU proposed an increase of 9,5% across the board for a period of 3 years which

they believe will be beneficial to all employees in the private security sector.

3.1.2 Employers views

Employers believe that the issue of increasing the minimum wage should be tackled with

caution to avoid job losses as most of the security companies in the areas falling under Area 3

have been subjected to huge wage bill increases which was caused by absorption of the

elimination of grade E security offices and the incorporation of area 4 into area 3, which

resulted in massive cost to business increases as compared to the other areas. The majority of

employers in the sector who attended the public hearings proposed that new wages should be

determined by utilizing CPI as it is the most appropriate tool. They further indicated that during

year 2 and 3, minimum wages should be increased by CPI plus 1 or 2%. Employers argued that

their inputs in relation to the minimum wage levels are informed by the following factors which

impact negatively on the ability of employers to conduct business successfully:

Increase on PSIRA rates;

Competing with unregistered and non-compliant companies in the market; and

Increased risks levels of operating in this industry.

Furthermore employers indicated that they do not get the annual increase as legislated in the

sectoral determination from their clients.


Employers in some areas also proposed a CPI related increase to the current minimum wage.

Employers mentioned that they are subjected to ever increasing overhead costs of business such

as fuel increases and other costs, which impedes on the ability of employers to conduct their

businesses successfully. Furthermore they indicated that majority of employers in the sector

provide free transport to employees, which is an additional cost to business. Employers

vehemently opposed a double digit increase put forward by employees and indicated that such

an increase would lead to an inability by the employers to remain profitable, and would

therefore result in unemployment. Employers raised concerns that employees do not

understand how the private security sector operates hence it is easy for them to demand huge

increases.

The employers across the country were also concerned about what they call unrealistic wage

demands made by employees which may have a negative effect on clients, who will either

refuse to pay this, or consider mechanization to replace the security guards, which could lead to

job losses. They added that in order to circumvent this problem, security companies should

focus on improving training and development to up-skill workers.

Employers in Bethlehem representing Maluti Security, Wulf Alarms and Cybko Security in

their submission indicated that all consumers in South Africa experiencing the ongoing

increases in food, petrol, electricity, taxes etc; they consider it reasonable to implement annual

increases accordingly. They however felt that the annual increases should stick to the CPI as

published annually by Statistics South Africa, with no added percentage increase on top of CPI.

Considering all the other increases on allowances as well as the proposed additional allowance

for Grade D security guards referred to as “Grade D Premium”, the total increase will then

exceed the average wage increases across different sectors.

3.1.3 Bargaining forum agreement

Parties at the bargaining forum agreed that the monthly minimum salaries of all Security

Officers in Area 1 as contained in Sectoral Determination 6 should be increased as outlined in

the table below:Table 7: Minimum wage proposals NBFGrade Year 1

Rand value %

A R214.00 5.85%


B R214.00 6.66%

C R214.00 7.95%

D R214.00 8.50%

In respect of all other Areas and categories of employment, the parties agreed as follows:

a) The equivalent percentage value of the increases as set out above should apply to

security officers of the grades in all other Areas in each year of operation of the sectoral

determination.

b) The equivalent percentage value of the increases as set out above in respect of security

officers Grade D shall apply to all categories of employment not mentioned in each

respective year of operation of the sectoral determination.

3.9.2 Departmental recommendations

The Department would like to point out that during the public hearings stakeholders in the

private security sector understand the role of the bargaining forum and also that the bargaining

forum play important role.

The Department is takes cognisance of the challenges already facing the sector due to the

process of phasing out area 4 and Grade E security officers in a short space of time. This

therefore means that determining the level of the new wage should consider the economic

situation especially for those employers who were in past falling under area 4. Taking into

consideration all the agreed increases on the different allowances as well as the increase on the

minimum wage will this result to an increase of approximately 10, 65% . This basic calculation

based on salary of a Grade D security officer as proposed in the agreement:

Minimum Wage: R2093 + 8.5%

= R2270.91

Grade D premium: + R25.00 (1.19%)

= R2295.91

Area 3 premium: + R20.00 (0.96%)

= R2315.91

Total % increase = 10.65%

Furthermore, in promoting collective bargaining spirit within the sector, the Department

supports the new minimum wage levels and wage increases for subsequent years as agreed to in


the negotiating forum. It should also be noted that the private security sector is moving towards

the establishment of a national bargaining council. This therefore means that the sectoral

determination will cease to operate once the bargaining council is in place.

3.2 Premiums

3.2.1 Grade D premiums

In terms of the signed agreement Grade D premium is aimed at reducing the gap between Grade

D and Grade C.

3.2.1.1 Bargaining Forum agreement

The parties agreed that all security officers in all areas should receive Grade D premium, which

should be paid as an additional allowance. The parties agreed that Grade D premium should be

paid as follows: Table 8: Recommended Grade D premiumsYear 1 Year 2 Year 3

R25 per month R50 per month R75 per month

3.2.2 Area 3 premium

According to the agreement Area 3 premium is aimed at reducing the minimum wage gap

between Area 3 and Area 2 in the future.

3.2.2.1 Bargaining Forum agreement

The parties agreed that all security officers in Area 3 should receive Area 3 premium, which

should be paid as an additional allowance. The parties agreed that Area 3 premium should be

paid as follows: Table 9: Recommended Area 3 premiumsYear 1 Year 2 Year 3



The Department support the proposal made by the Bargaining Forum as it is aimed at

incorporating Area 3 into Area 2 and also to address the issue of narrowing wage gap between

Grade D and C.

3.3 Special Allowance

The current special allowance is R5.50 per shift for the following employees:

a) Mobile Supervisors


b) Armed Security Officer

c) Armed Response Officer

d) National Key Point Officer

e) Control Centre Operator

3.3.1 Bargaining Forum Agreement

The parties agreed to adjust the special allowances referred to in Clause 6 of the Sectoral

Determination as set out below: Table 10: Recommended special allowanceCategory Shift allowance

Year 1

Shift allowance

Year 2

Shift allowance

Year 3

Mobile Supervisors R5.50 R6.50 R7.00

Armed Security Officer R5.50 R6.50 R7.00

National Key Points Officer R5.50 R6.50 R7.00

Control Centre Operator R5.50 R6.50 R7.00


The Department support the signed agreement for special allowances which in essence reflects

an additional R1.00 increase for the second year and 50c in the third year.

3.4 Night Shift Allowance

The night shift is between the hours of 18:00 and 6:00 the next day and the employee who is

working between those hours would be entitled to be paid night shift allowance. Currently the

night shift allowance is R5.00 per shift.

3.4.1 Employees views

In a written submission from SATAWU, it was alleged that 80% of the workforce in the

Security sector work at night and consideration should be given to a premium increase for night

shift allowance as this should not be treated as a normal activity. They further indicated that

employers have a moral obligation to take this aspect very seriously. Although SATAWU was

sceptical to agree with the agreement signed in relation to this matter, they however indicated

that the 50c increase to the current R5.00 night shift allowance which employers agreed to at

the bargaining forum should be implemented as from 1 September 2012.

3.4.2 Bargaining Forum agreement


The parties agree that the night shift allowance shall increase to R5.50 with effect from the third

year of agreement.


The Department support the agreement signed at the bargaining forum in relation to the

additional of 50c on the night shift allowance rate.

3.5 Long Service

Currently security officer is entitled to service benefits upon completion of a given

uninterrupted service with the same employer.

a) R500.00 after 5 years

b) R1000.00 after 10 years

c) R5000.00 after 20 years

3.5.1 Employees views

SATAWU in Free State proposed that service benefits should be calculated as follows:

a) R1500.00 for 5 years

b) R2500.00 for 10 years

c) R3000.00 for 15 years

d) R4000.00 for 20 years

e) R5000.00 for 25 years


The Department propose that the status quo remain as this will put more pressure on the

employer’s side as they are expected to pay the increase in minimum wages and proposed

premiums which will result in huge costs.

3.6 Annual increase

The sectoral determination for Private Security sector currently prescribes wages for a period of

three years. During the second year an increase of 7.25% to Grade D in all areas was

prescribed, whilst Grade A to C was increased by Grade D Rand value. In the third year Grade

D was increased by 7% whilst Grade A to C was increased by Grade D Rand value. The

following table reflects the increment for year 2 and 3 for area 3:Table 11: Increment for Year 2 and 3 for Area 3

Year 2 (2010-2011) Year 3 (2011-2012)


Grades Hourly Rate Rand or % Hourly rate Rand or %

A R13.93 R0.64 R14.59 R0.65

B R12.39 R0.64 R13.05 R0.65

C R10.10 R0.64 R10.75 R0.65

D R9.41 7.25% R10.06 7%


There were diverse views on the issue of annual increases among the employees during the

hearings. While the majority concur with the idea of three years term, some employees think

that the idea of determining wages for a longer duration does not do justice to employees as the

level of CPI fluctuates. They therefore proposed that in dealing with the situation minimum

wages should be reviewed annually. There was however a majority who supported the

agreement of the bargaining forum in that it also attempts to address the wage gaps between the

areas and grades. SATAWU proposed an increase of 9.5% across the board for year 2 and 3 as

they believe that it will be beneficial all categories of employees in the sector.


Employers indicated that the appropriate measure to determine annual increases is the CPI as it

projects the economic standing of the country at a particular period. They further pointed out

that the current approach should be utilized as it takes into consideration the CPI. The majority

of employers supported the agreement signed. They however requested the Department to also

inform their clients of the requirements of the sectoral determination especially in relation to

wage increases.

3.6.3 Bargaining Forum agreement

The parties agreed that the annual minimum wages should be increased as follow for year 2 and

3:Table 12: Agreed annual wage increasesGrade Year 1 Year 2 Year 3

Rand %A R214 5.85% Grade D Rand value Grade D Rand value

B R214 6.66% Grade D Rand value Grade D Rand value

C R214 7.95% Grade D Rand value Grade D Rand value

D R214 8.5% Inflation rate plus 2 %( Min

7.25% 0r Max 8%)

Inflation rate plus 2% (Min 7% or

Max 8%)


Reference to CPI should mean the annualised CPI as published by Statistics South Africa as at

30 June 2013 for the purpose of calculating increases in the second year of this determination;

and as at 30 June 2014 for the purpose of calculating increases in the third year of this

determination.


The Department support the agreement signed at the bargaining forum in relation to

determining annual wage increases.

3.7 Annual bonus

The current sectoral determination prescribes annual bonus which employees becomes entitled

to after completion of the 12 months of service with same employer. In the event that the

employee’s contract of employment ends before the end of any subsequent 12 month cycle with

the same employer for any reason other than resignation or dismissal for misconduct, poor

performance not related to incapacity for ill health, employee must receive a prorated share of

the bonus for the year that he/she has worked.


On this issue the majority of employees including SATAWU proposed that the current bonus

provision should be replaced by the entitlement to a 13th cheque.


Employers believe that the current calculation of bonus as prescribed is fair and the system will

motivate employees to work hard to get what is due to them. They believe that the employee

should get what they deserve as bonus is actually earned form the hard work done and not on

the bases that you were present at work. Employers argued that an increase in the bonus will

mean a further increase in minimum wages. Employers further indicated that in actual fact

bonus should not be possibly regulated due to the fact that this comes as an incentive for well

done job and should be then left for the employer to decide. Employers in Bethlehem proposed

that the status quo should remain the same on the issue of bonus.



The parties at the bargaining forum agreed that the current bonus provision should be changed

to reflect that an employer should pay every security officer, for each month that the employee

was paid or entitled to be paid in respect of each completed 12 months of service with such

employer, an annual bonus, calculate as follows:

A – (B X C)

12

A = Security officer’s ordinary salary

B = Security officer’s hourly equivalent rate of pay

C = The number of hours worked short due to absenteeism

Provided that –

(i) only unauthorised hours of absence should be used in determining the figure “C” in the

above formula.

o any period of approved absence, including but not limited to, annual leave, sick

leave, maternity leave, study leave, family responsibility leave and protected

industrial action shall not be used to reduce the bonus payable in terms of this

clause, and

o any employee who is scheduled to perform duties as a spare and is not utilised for

that shift should suffer no detriment for the duration of the shift in the

accumulation of his/her annual bonus.

The annual bonus should be paid on the anniversary of the security officer’s date of

employment with the employer unless the employer and a representative trade union and/or the

security officer mutually agree in writing upon another date.


The Department support the agreement signed at the bargaining forum with regard to the issue

of bonus calculation.

3.8 Demarcation

Currently the sector is demarcated into three areas namely; area 1, area 2 and area 3 as

discussed in chapter 2 above. The current demarcation is in accordance with magisterial

districts, and the applicable minimum wage is determined by area where security officer works.



During the public hearings employees in all provinces proposed that there should be a way to

phase out the three tier system and introduce single wage across the country. Area 3 and Area 2

should be phased out and remain with a single area which will prescribe a national minimum

wage for the sector. Employees indicated that a single wage will assist in dealing with the

following challenges which employees are faced with:

a) Unfair treatment by the employers, and

b) Exploitation of the workers.

In addition they argued that it is unfair and unconstitutional that employees employed by the

employer but working in different areas, at the same level, doing same job are remunerated

differently. SATAWU proposed that the current demarcation model should be phased out as

some of the areas do not fall under the magisterial district due to the current model of

demarcation which focuses on the municipalities and not magisterial districts.

SATAWU also proposed that the current gap between the areas should be phased out

completely. SATAWU believe that move to phasing out of Areas will bring parity in the sector.

They further indicated that the phasing out can be dealt with by adding a premium of R35.00

for the 1st year, R70.00 in the 2nd year and R105.00 in the 3rd, which should be paid with effect

from the 1st September 2012. SATAWU would like that to be completely by 2015.


The majority of the employers in the sector concur with the idea that status quo should remain.

They therefore proposed that the current areas should be retained for now. Although majority

concurred with the system in place to phase out areas there are those employers mostly located

in area 3 concerned about this move. Employers in Welkom indicated that with lots of mining

activities closed in their area it is difficult to operate productive and incorporating them with

Area 1 will be difficult for them.


The parties agreed to retain the current demarcation while putting in place a mechanism to deal

with Phasing out Area 3. The parties agreed that for now the sector should carry on with three

Areas.



The Department supports the agreement signed in relation to maintaining the current status on

the demarcation. This is further informed by the fact that the sector will soon establish a

bargaining council and this matter should be dealt with at that stage.

3.9 Other Conditions

3.9.1 Housing and HIV/AIDS

The parties agreed to establish a task team (comprising representatives of Trade Unions and

Employer Organisations) to investigate and produce a report to the National Bargaining Forum

on initiatives that can be implemented jointly by the Parties insofar as the manner in which the

interests of workers in the Private Security Sector relating to Housing and HIV/Aids may be

addressed. The parties agreed that the National Bargaining Forum will establish terms of

reference and time frames for the task team.

3.9.2 Hours of WorkIn the Kempton Park hearing, employees raised the issue of hours of work. They stated that in

2006 agreement was reached in principle that hours would be reduced to 8 hours per day, and

that a task team would be established to find ways to achieve this. They stated that no progress

has been made. The motivation in favour of 8 hour shifts was that it is impossible to concentrate

for 12 hours, and that many workers are dismissed for sleeping on duty. They referred to the

number of sleeping dismissal cases referred to the CCMA. They also mentioned that a number

of companies, including the large employer G4, already work on 8 hour shift. We need to

discuss hours – currently the Sectoral Determination limits hours to 48 hours per week. This is

4 x 12 hour shifts, or 6 x 8 hour shifts. There is no reason why eight hour shifts cannot be

legislated at very little cost to the employers, and no loss of earnings to the employees. The

only additional cost would be some instances of additional transport costs, but this would not be

the case for all employers.

3.10 Other Issues

3.10.1 Enforcement and Inspection

Employees complain about the issue of employers not complying with the sectoral

determination. They even indicated that the SD is failing people as well as the Department.

They also indicated that before the SD was promulgated, they were living a happy life because

they used to earn more than they are earning now. They said their sector was not supposed to be

deemed vulnerable. They also raised a concern about the government’s privatisation of the


Private Security sector. Some employees are still employed by government and therefore still

have personal salary numbers PERSAL, whereas some do not. This continues to create

confusion in the sector. The minimum wage is becoming the maximum wage as employers use

this as a yardstick which government proposes Private Security sector workers should be paid.

Another challenge is that the companies are busy retrenching those people with PERSAL

numbers as they apparently earn more than the minimum wage.

3.10.2 Government Departments

Parties in the sector they are concerned about the way government Departments issue security

service tenders. Most of the Government Department they undermine the companies who are

comply with the law and award tenders to those fly by night and they get away with that. Many

security companies working for Government Departments exploit employees by posting one

security officer where four should be posted, and by not contribution to UIF. To make matters

worse, some of the contracted companies are owned by Government Officials. An attempt was

made in order to expose those companies wherein list was submitted to the PSIRA and nothing

happened to address that matter. A stakeholder raised the issue of contracting in of security

services by some government departments. The employer argued that the government should

ask advice from previous service providers, and that government should ensure that they

employ the workers from the service providers.

3.10.3 Medical Aid

This issue was raised by employees in Kempton Park. An employer argued in response that the

NHI is coming soon and that should be the answer.

3.10.4 Transfer Allowance

A proposal for an increase in the allowance and a reduction in the radius was made by

employees in the Bloemfontein hearing.

3.10.5 Housing Allowance

In Kempton Park employees indicated that the issue of housing should be addressed in the

sector as some employees does not qualify for RDP houses and bonds. They further stated that

the situation is unbearable where these security officers are leaving as they relay only on

renting room in the community.



The Department is of the view that other issues should be given a through investigation due to

the fact that this issue were not properly consulted on hence it would therefore be unfair for the

Minister to impose such conditions without having conducted the normal consultation process.


CHAPTER FOUR

4 EVALUATION IN TERMS OF ECC CRITERIA

4.1 Alleviation of poverty and impact on cost of living

The Private Security sector is one of those sectors that can be classified as sector

accommodating the most underprivileged citizen of the country. Many of the employees in this

sector come from the informal settlements and poor families. It’s quite crucial that when

dealing with this sector the focus should be on the issue of poverty. In most cases the prescribed

minimum wages in the sector become what employees are getting in the sector.

The income earned from employment will be important, particularly since the aim is to reduce

poverty and tackle the issue of cost of living. This requires, not only the creation of

employment, but also raising income earned from work. In other words, some path is needed

that would create jobs and also enable real wage growth in a way that is supportive of long term

economic expansion.

No matter how successful employment policy is, it is quite certain that severe unemployment

and under-employment will persist. The problem has simply become too big for market-based

solutions to solve the problem within the next 10 to 20 years. The ‘problem’ includes both

severe unemployment and very low levels of remuneration from market-based employment.

Income and expenditure in South Africa continue to be distributed in a highly unequal manner.

Annual household income and expenditure continue to vary by population group, sex and

province, and within province, by urban and non-urban environments. African female headed

households and households in non-urban areas remain the poorest. African households

generally tend to be the least affluent, followed by coloured and Indian households, while the

most affluent households still tend to be those headed by white people, particularly men.

In South Africa, earnings from employment and self-employment are low relative to the cost of

living. The Labour Force Survey shows that about 65% of all workers earned less than R2500

per month, and 39% earned less than R1000 per month. Low earners are not only found in the

informal sector: just over half of formal sector workers earned less than R2500 per month. Low

earners in the formal sector are not only found in low level jobs: about two-thirds of craft

workers and plant and machinery operators earned R2500 per month or less. Grade D

employees in the Private Security sector earn way below R2500 per month. What does this

mean for poverty? There is no official poverty line, but the National Treasury recently released


a discussion paper suggesting that it might initially be set at the equivalent of R430 per person

per month in 2006 Rand. About 50% of the population would fall below this level. What if the

unemployment problem were virtually resolved and fell from about 25% to 13% to 6.5%? Most

of us assume that this would dig deeply into the poverty problem.

Insofar as current minimum wages in the sector don’t sufficiently contribute to some minimum

livelihood; it would be the job of the state to address this. Some balance is needed that does not

create a disincentive to employ, but that also enables working people to assemble an acceptable

standard of living.

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

businesses

It has always been a challenge for the Private Security sector to operate effectively under this

circumstance they are facing now. A concern for security firms, is that PSIRA (The Private

Security Industry Regulatory Authority) has recently released new regulations which drastically

change the regime of regulatory fees which are payable by the security service providers and

security officers to PSIRA. These fees have been increased by approximately 40%, which

registered companies are obliged to pay upfront on an annual basis, and no longer on a monthly

basis, as published on The Skills Portal. These regulations are not only in complete contrast

with the government policy on the support of small and medium businesses in South Africa, but

also impact on larger security companies.

A reason for the increase in these fees could be that PSIRA is not funded by government and

driven on the revenue derived from security guards and companies’ levies. “Government will

be taking responsibility for regulation i.e. they will be funding regulation”, says PSIRA

director, Manabela Chauke. Diavastos, Group 4 Securicor HR Director and SIA executive

committee member is of opinion that security guards, who already are earning a minimum

wage, should not be contributing to the regulation of the industry out of their own pockets.

Furthermore, Police minister Mthethwa states that should the government fund this regulatory

body, PSIRA’s service delivery will improve, recruitment of more inspectors will drive

compliance monitoring in the industry, and better information and communication technologies

infrastructure will assist with compliance.


It emerged during the public hearings that most of the complying employers in the sector are

pushed out market due to the escalating cost of operation, while non compliant companies

survive. This fly by night companies grab most of government tenders for the fact that they can

bid lower and after winning the tender they exploit employees by paying them lesser rate than

what is prescribed in terms of the law. During the public hearings, the department advised and

emphasized the need to consider the sectoral determination when submitting the tender

documents. Considering the level of wages in the sector, the exclusion of new and small

business from paying the minimum wages is not recommended.

4.3 Impact on current employment and the creation of employment

South Africa's private security industry is one of the largest in the world, providing large

numbers of semi skilled jobs in the country. This is often attributed to the country's former high

levels of crime or to a lack of public funds from Parliament in the Central Yearly State Budget

Allocated towards the South African Police Service (SAPS). However, due to the success of the

2010 FIFA Football World Cup, watched by over a billion international television viewers from

around the globe, and reported on widely in the international printed press, public confidence

levels in both the SAPS and in private security companies have improved.

Due to a widespread lack of compliance with registration requirements, it is difficult to

determine the number of workers in the industry. About 12000 applications for registration by

both Companies and Individuals due to reasons such as previous criminal activities were turned

down between 1 April 2010 and 31 March 2011, the last financial year. According to the last

year report as tabled in Parliament since 2001 the amount of Registered Companies has

increased by 61 percent and the amount of Registers Security Officers by 111 percent.


http://en.wikipedia.org/wiki/South_African_Police_Service

http://en.wikipedia.org/wiki/Crime_in_South_Africa

http://en.wikipedia.org/wiki/Crime_in_South_Africa

CHAPTER FIVE5. ECC RECOMMENDATIOND

5.1. Minimum WagesThe ECC recommends and support the agreement reached by the parties regarding new wage

levels and wage increases. The minimum wages increase for security officers grade D and all

other categories in all areas should be increased by 8.5% while the increase for all higher grades

or levels for all categories will be calculated by adding the rand value of the entry levels

applicable to each category to the year 1 salary levels for all such higher grades or levels.

The tables below reflect the new wages tables:

Table 1Area 1

In The Magisterial district of:Alberton, Bellville, Benoni, Boksburg, Brakpan, Camperdown,

Chatsworth, Durban, Germiston, Goodwood, Inanda, Johannesburg, Kempton Park, Krugersdorp, Kuils River, Mitchell’s Plain, Nigel, Oberholzer, Paarl, Pinetown, Port Elizabeth, Pretoria, Randburg,

Randfontein, Roodepoort, Sasolburg, Simon’s Town, Springs, The Cape, Uitenhage, Vanderbijlpark, Vereeniging, Westonaria, Wonderboom and

Wynberg. 1 September 2012

To31 August 2013

1 September 2013To

31 August 2014

3 September 2014To

31 August 2015

Monthly Hourly

Artisan R5,001 R25.65

Prev

ious

min

imum

wag

e +

CPI

+ 2

% O

RM

in 7

.25%

, Max

80%

Prev

ious

min

imum

wag

e +

CPI

+ 2

% O

RM

in 7

%, M

ax 8

0%

Clerical Assistant During the first year of experience R2,491 R12.78 During the second year of experience R2,540 R13.03 Thereafter R2,585 R13.26Clerk During the first year of experience R2,721 R13.95 During the second year of experience R2,916 R14.95 During the third year of experience R3,092 R15.86 Thereafter R3,283 R16.84Driver of a - Light motor vehicle R2,622 R13.45 Medium motor vehicle R2,841 R14.57 Heavy motor vehicle R2,985 R15.31General Worker During the first 6 months of employment R2,041 R10.47 Thereafter R2,119 R10.87Handyman R2903 R14.89Security Officer Grade A R3,872 R18.62 Grade B R3,425 R16.47 Grade C R2,905 R13.97

Grade D and E R2,733 R13.14

Employees not elsewhere specified including car guards R2,519 R12.92


Table 2Area 2

In The Magisterial district of:Bloemfontein, East London, Kimberley, Klerksdorp, Pietermaritzburg,

Somerset West, Stellenbosch and Strand. 1 September 2012

To31 August 2013

1 September 2013To

31 August 2014

3 September 2014To

31 August 2015

Monthly Hourly


Pre

viou

s min

imum

wag

e +

CPI

+ 2

% O

RM

in 7

.25%

, Max

80%

Prev

ious

min

imum

wag

e +

CPI

+ 2

% O

RM

in 7

%, M

ax 8

0%

Clerical Assistant During the first year of experience R2,285 R11.72 During the second year of experience R2,322 R11.91 Thereafter R2,375 R12.18Clerk During the first year of experience R2,170 R11.13 During the second year of experience R2,389 R12.25 During the third year of experience R2,502 R12.83 Thereafter R2,675 R13.72Driver of a - Light motor vehicle R2,431 R12.47 Medium motor vehicle R2,626 R13.47 Heavy motor vehicle R2,753 R14.12General Worker During the first 6 months of employment R1,872 R9.60 Thereafter R1,954 R10.02Handyman R2,160 R11.08Security Officer Grade A R3,540 R17.02 Grade B R3,126 R15.03 Grade C R2,673 R12.85 Grade D and E R2,500 R12.02


Table 3Area 3 All other Areas not specified else where

1 September 2012To

31 August 2013

1 September 2013To

31 August 2014

3 September 2014To

31 August 2015

Monthly Hourly


Prev

ious

min

imum

wag

e +

CPI

+ 2

% O

RM

in 7

.25%

, Max

80%

Prev

ious

min

imum

wag

e +

CPI

+ 2

% O

RM

in 7

%, M

ax 8

0%

Clerical Assistant During the first year of experience R2,067 R10.60 During the second year of experience R2,104 R10.79 Thereafter R2,156 R11.05Clerk During the first year of experience R2,291 R11.75 During the second year of experience R2,455 R12.59 During the third year of experience R2,633 R13.50 Thereafter R2,792 R14.32Driver of a - Light motor vehicle R2,201 R11.29 Medium motor vehicle R2,398 R12.30 Heavy motor vehicle R2,524 R12.94General Worker During the first 6 months of employment R1,679 R8.61 Thereafter R2,524 R9.00Handyman R2,476 R12.70Security Officer Grade A R3,213 R15.45 Grade B R2,892 R13.90 Grade C R2,417 R11.61

Grade D and E R2,271 R10.92



5.2. Premiums 5.2.1. Grade D Premiums

The Commission recommended that Grade D premium should be implemented as stipulated in

the agreement. The agreement stipulates as follow:

Year 1 Year 2 Year 3


Grade D premium was introduced to ensure that the wage gaps between Grade D and C is

reduced.

5.2.2. Area 3 Premiums

The ECC recommended that Area 3 premium should be implemented as agreed in the

Bargaining Forum agreement. The agreement tabled as follows:

Year 1 Year 2 Year 3


Area 3 premium is introduce to try and close the gap between Area 2 minimum wages and Area

3 minimum wages.

5.3. Special Allowance

The Commission recommended that the special allowance should be increase the manner is

tabled in the signed agreement by the parties. The agreement tabled as follows:

Category Shift allowance

Year 1

Shift allowance

Year 2

Shift allowance

Year 3

Mobile Supervisors R5.50 R6.50 R7.00

Armed Security Officer R5.50 R6.50 R7.00

National Key Points Officer R5.50 R6.50 R7.00

Control Centre Operator R5.50 R6.50 R7.00


5.4. Night Shift Allowance

The Commission recommended that the night shift allowance should be increased by R0.50 as

stipulated in the National Bargaining Forum agreement.

5.5. Long Servicer

The ECC supports the proposal by the Department in relation to the issue of long service that

the status quo should remain the same. Currently the long service is paid as follows:

a) R500.00 (Five hundred rand) after 5 (Five) years,

b) R1000.00 (One thousand rand) after 10 (Ten) years, and

c) R5000.00 (Five thousand rand) after 20 (Twenty) years.

5.6. Annual Increase

Taking into account the singed agreement as well as the proposals and recommendations made

by the Department, the ECC recommends that the annual increases for year 2 and 3 will be

calculated by adding the annualised Consumer Price Index plus 2% (two per cent) to the

security officers Grade D and all other categories in all areas salary rates for the year 2 of this

determination, with a minimum increase of 7.25% (seven and a quarter per cent) for such entry

levels and maximum of 8% (eight per cent) while in the third year of the determination Grade D

security officers will receive annualised Consumer Price Index plus 2% (two per cent) to the

Grade D salary rate with a minimum increase of 7% (seven per cent) for such entry levels and

maximum of 8% (eight per cent).

5.7. Annual Bonus

The ECC recommended that the signed agreement in relation to the new formula which

is agreed to by parties in terms of annual bonus should be adopted. The new formula

stipulates that for each month the employee was paid or entitled to be paid in respect of

each completed 12 months of service with such employer, an annual bonus, calculate as

follows:

A – (B X C)

12

A = Security officer’s ordinary salary

B = Security officer’s hourly equivalent rate of pay

C = The number of hours worked short due to absenteeism

Provided that –

(i) only unauthorized hours of absence should be used in determining the figure “C” in the

above formula.


any period of approved absence, including but not limited to, annual leave,

sick leave, maternity leave, study leave, family responsibility leave and

protected industrial action shall not be used to reduce the bonus payable in

terms of this clause, and

any employee who is scheduled to perform duties as a spare and is not utilized

for that shift should suffer no detriment for the duration of the shift in the

accumulation of his/her annual bonus.

5.8. Demarcation

The ECC supports the signed agreement by the parties in relation to the issue of demarcation

and support the idea of introducing the Grade D and Area 3 premiums to minimizing salary gap

between Grade C and Grade D and also to minimize rate gaps between Areas 2 and Area 3.

5.9. Other Conditions

The Commission recommended that status qua should remain the same on other conditions. The

ECC therefore agree that it is not necessary to revisit these conditions at this point.

During the deliberation in the ECC meeting the commissioners raised a concern in relation to

the way some of the decisions are agreed in the Bargaining Forum particularly on the issue of

minimum wages for the Grade A to D in the year 2 and 3 for this determination. Although they

agreed with the signed agreement they are concerned that these categories will be

disadvantaged in those years as this can result in those particular categories getting increases

below the inflation rate. They further raised their concern on the following issues:

a) Premiums and other allowances

b) Section 15 clause (c)(ii) which deals with the radius

c) Areas


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