Majority of Medscheme employees welcome proposed wage offer

Medscheme says it is disappointed that union Nehawu is planning industrial action without considering a revised wage offer proposed on June 22, 2011.

Lee Callakoppen, Executive Director: Human Capital, says that the revised offer has already been welcomed by 92% of non union staff as well as members of another recognised trade union.

“We will therefore be implementing the salary increases in respect of those employees who have accepted the offer as we cannot prejudice the more than 60% of employees not affiliated to Nehawu,” he said.

The current revised offer amounts to a 7% overall wage cost increase to Medscheme and includes:

· a performance-based wage increase of between 4,25% and 7%

· a minimum salary of R8000

· a once-off payment of R550 to assist with medical inflation

· a 10% increase on long service awards.

These are among a list of demands tabled by Nehawu, of which several demands were in principle agreed to by parties, prior to the deadlock on the item of the percentage increase.

The overall offer is above the CPI of 4,6% as reported in May 2011, and will still remain in line with the 6% inflation level that has been forecast to be reached by the end of the year. The increase in the minimum wage from R7000 to R8000 translates into an increase of just over 14% for some employees. This is well above industry norms, which places minimum wages between R4125.00 – R4695.00

Medscheme believes that the decision to grant a once-off payment of R550 to assist with medical inflation in addition to the proposed wage increase is a reasonable offer to employees.

“Medscheme’s intention is to drive a performance culture through the implementation of performance-based wage increases, as we strive for excellence in the healthcare industry. This way we can serve members of schemes better and thus reward exceptional performing employees accordingly. These increases are further enhanced by variable pay in the form of production incentives that are paid to most employees on monthly basis, above their guaranteed salaries that is currently being negotiated on,” says Callakoppen.

“During the entire negotiation process, Medscheme has maintained an openness to engage with the union to reach an amicable settlement. Nehawu has, however, failed to respond to our latest offer and has referred the matter to the CCMA for statutory conciliation,” he says.

Whilst we respect the rights of employees to freely associate, we also expect that the rights of those employees who accept our offer to be respected regardless of their union membership.”