02 March 2017 | Francis Petersen

Dear UCT colleagues

You will have received an electronic copy of your Compensation Review Letter/Cost of Employment (CoE) structure letter containing information on the 6% CoE adjustment with effect from 1 January 2017.

Prior, management and the Unions have reached a deadlock in negotiations. Management’s offer of a 6% increase had been implemented by the university at that point, for reasons which it deemed practical.

The decision and the implementation by UCT management are contested by the trade unions.

The university is participating, as per due process, in the current wage negotiation disputes lodged by the Academics Union, the Employees Union and NEHAWU.

The following detail aims to provide clarity in response to queries and comments received with respect to the aforementioned CoE letter.

  • It is only necessary to return the CoE schedule which accompanied the letter by 3 March 2017 if you wish to make changes to your CoE structure. To do so, return the schedule to the relevant HR Administrator for your faculty/PASS department. Details of your HR Administrator can be found at http://www.hr.uct.ac.za/hr/contacts#admin
  • Once a final settlement is reached between Management and the Union(s), a new COE letter will be issued if that agreement sets an increase amount greater than 6%. Any further adjustments which may be desirable can be made at that time.
  • Staff wishing to restructure their CoE by changing their Deemed Pensionable Amount (DPA) (which is your contribution to the UCT Retirement Fund) will be able to do so but only with effect from the beginning of March 2017.

Management apologises for any inconvenience that may have been caused by the lack of information and clarity.

Yours sincerely

Professor Francis Petersen
Deputy Vice-Chancellor

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