Question NW2763 to the Minister of Transport

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28 September 2017 - NW2763

Profile picture: Esau, Mr S

Esau, Mr S to ask the Minister of Transport

(1)How are salaries and salary scales determined within the various entities which report to him (2) whether any officials get remunerated more than others on the same or higher levels; if so, why; (3) whether any staff members do not have medical aid as part of their remuneration packages; if so, why; (4) whether any officials with lower qualifications get promoted above those with higher qualifications; if so, why?

Reply:

1. AIRPORTS COMPANY SOUTH AFRICA LIMITED (ACSA)

1. Airports Company SA integrated the Paterson job grading system, applicable to all positions in the company based on the grade of the position, pay scales are defined, noting the company job family classification framework per job, defining the minimum midpoint and the maximum of such pay scale. In the context of “equal pay for equal work” principles the ACSA further integrated pay ranges which defines the remuneration gap between lowest and highest earning employees, therefore supporting equality and transparency. The pay scales of the company are benchmarked against the South African market, on an annual basis whilst the pay policy is anchored at the 50th percentile.

2. Remuneration is dealt with in accordance with 1 above. All employees are therefore remunerated within the pay scale as well as pay range, differentials in pay, within the pay scale, will be dictated by qualification experience technical capability critical and scarce skills as well employee considerations.

3. All employees of the company belong to a medical aid noting that is part of company policy. Employees inside the bargaining unit are subsidized, principally on a 50/50 basis.

4. Airports Company South Africa describes all positions in the company through detailed role profiles, these role profiles amongst others describe the purpose of the job, KPI’s to be achieved, competencies as well as qualifications. Recruitment, Selection and appointment processes are therefore based on this meaning, the most suitably qualified employee will be appointed.

2. CROSS-BOADER ROAD TRANSPORT AGENCY (C-BRTA)

1. At the Cross-Border Road Transport Agency (C-BRTA), salaries and salary scales are determined through a process of job evaluation and grading which is based on the remuneration philosophy. The job evaluation system used within the C-BRTA is the Peromnes job evaluation system, which directly correlates with all known Job Evaluation Systems.

2. Yes, employees who are employed on the same level may be remunerated differently depending on their skills, experience and earnings prior to joining the Agency. This may also be attributed to the fact that some remuneration bands per job grade level overlap between levels, and as a result, employees who are on the same level may be remunerated differently within the remuneration bands.

3. In the C-BRTA it is mandatory that all employees are covered by medical aid, either as principal members or as dependents to their spouses. The remuneration packages offered within the Agency are all inclusive Total Cost to Company.

4. The Agency employees progress from one position to another through an open, fair competition process where everyone who meet the minimum requirements of the job is given a fair chance to compete in an interview.

3. SOUTH AFRICAN MARITIME SAFETY AUTHORITY (SAMSA)

1. The salary scales are determined by developing a job grade using the Patterson job grading system. This determines the seniority level of the job.

We used job grades to do internal benchmarking as well as a per-grade benchmark with other State Owned Enterprises (SOE). The survey used was 21st Century Pay Solutions survey amongst State Owned Enterprises including those in the Department of Transport.

We positioned a rational pay curve after analyzing the compo ratio with external benchmarks and created the pay ranges taking into consideration the seniority levels in the organization and pay ranges that allows for overlap.

Salaries are determined based on the job’s grade and the salary range the job falls under. A number of factors are then taken into consideration including amongst others: work experience, previous salary.

2. Yes. The reason may be seniority, level of responsibility, qualifications, experience, and scarce skills

3. Yes. The reasons include belonging to spouses’ medical aid, on fixed term contract, have medical aid but has not transferred to SAMSA’s billing. Historically, medical aid was not compulsory, therefore a few employees are not part of medical aid due to additional cost. These employees are being engaged at the moment to choose cheaper medical aid options.

4. Yes, with the proviso that they meet the minimum requirements of the job.

4. PORTS REGULATOR OF SOUTH AFRICA

1. The Ports Regulator performed a salary benchmarking exercise in 2014/15 financial year. In the exercise the Regulator utilised the services of Rem-channel from PWC to compare the positions in the Ports Regulator organogram to similar positions in the database from Rem-Channel which includes both private and public sector remuneration data. The results were extracted and then also compared in the equate process with the Department of Transport to ensure that the salary levels and bands are in line with Government. The results from the latter process were then used to develop the salary scales and levels within the band for all positions in the Regulator organogram. It must be noted that the Ports Regulator is a unique organisation in the country and not easily comparable in its job descriptions to other transport entities.

2. There’s no instance of any official being remunerated more than others as all salaries given to employees are based on their qualifications, experience and skill and the job requirements.

3. All employees of the Ports Regulator have medical aid as per the requirements of the conditions of services of the Regulator, but employees may choose not to take this up as part of their package.

4. The Ports Regulator does not have a practice of promotions. All positions are filled through a normal recruitment process to ensure that competent talent is sourced for the vacant funded position, whether from internally or externally.

5. AIR TRAFFIC NAVIGATION SYSTEM (ATNS)

Factors

Source Document

Notes

CPI

Stats SA P0141

To obtain a view of commodities price changes in the market.

BER Projections

Bureau for Economic Research

To do projection and establish affordability for the next coming financial year.

External Market Survey

PE Trend Analysis Report

Provide insight of external market movement

Inflation Rate

PE Trend Analysis Report

To consider for annual salary scales movement

Individual Performance

ATNS Remuneration Directive

To encourage high performance culture through pay for performance matrix. The matrix is applied to determine individual salary increases based on the employee’s performance score.

  1. Below is the list of factors considered to determine salary scales and employees’ salaries.
  2. The officials are remunerated differently based on the relative worth of the job which then informs various grade levels and different salary scales in the organization.

On appointment, factors below are considered to determined salary to offer:

  1. current earnings of potential candidate;
  2. internal parity; and
  3. salary scale of that particular position.

For annual salary adjustment, since ATNS drives high performance culture. The below matrix (Pay for Performance approach) is used to determine annual salary increases:

Performance Category

Final Score

Pay Position relative to the Company Salary Band for the Job

   

Minimum

Midpoint

Maximum

Significantly Exceeded Expectation (SSE)

4.51 - 5

Base +4%

Base + 3%

Base + 1%

Exceeds Expectation (EE)

3.26 - 4.5

Base+3%

Base + 2%

Base + 0.5%

Meets All Expectations(MAE)

2.91 - 3.25

Base +1.5%

Base

Base

Meets Some Expectations(MSE)

2.01 - 2.75

Base - 1

Base - 1

Base -1

Not Meet Expectations(NME)

< or =2

0%

0%

0%

3. ATNS is on Total Guaranteed Package structure which includes statutory benefits i.e. Medical Aid and Pension Fund. Medical Aid Membership is a condition of employment for all permanent employees at ATNS unless if the employee elects to be a dependant of his/her Spouse. Such employees must provide the Company Annually, with proof of membership when they choose to join their spouse’s Medical Aid scheme.

As end of August, 94% of our employee are on ATNS Medical Aid, 6% are dependents on their spouses’ medical aid.

4. Amongst the number of factors that get considered in recruitment is meeting the minimum requirements of the job advertised.

 

6. PASSENGER RAIL AGENCY OF SOUTH AFRICA (PRASA)

1. PRASA uses the Paterson Grading System to determine pay scales.

2. Some officials get remunerated at the same level, but at a higher band than their peers because of the following reasons:

i) Their entry into the job market may have happened at different times.

ii) Their job experience is not at the same level, one might be compensated at a 25th percentile, but the other at a median whilst in the same job family and level.

iii) The span of control, decision making complexity, and accountability levels may also contribute to the different remuneration.

3. Yes. Employees get a medical aid subsidy as part of their Total Guaranteed pay, however, some employees opt out of medical aid.

4. This rarely happenes. Promotion in the same job families takes into account qualifications, competence, capability and performance and not only qualifications.

7. ROAD ACCIDENT FUND (RAF)

1. Salaries and salary scales in the Road Accident Fund (RAF) are determined with reference to salary benchmark surveys using three (3) different salary survey houses. The RAF uses the survey reports to draw a comparison with its current salary scales and where there are gaps, these are adjusted accordingly. Any adjustments made based on the survey outcome are submitted to the RAF Board for consideration and approval. RAF has a Remuneration and Reward Policy according to which salaries are managed.

2. The RAF’s Pay Progression Policy provides for a pay differentiation between high and average performing employees, that is, salaries of high performing individuals will get adjusted in accordance with their level of performance. Other elements that will qualify an employee for salary adjustment are the attainment of a new qualification, and tenure, provided that they have met the set performance score. In addition, there is provision in the RAF’s Talent and Succession Management and Staff Retention Policy for the payment of a retention allowance in respect of scarce and critical skills.

3. It is a condition of service at the RAF that employees must join a medical aid, except in an instance where the staff member is already a member of a medical aid at the time of joining, or belongs to a spouse’s medical aid.

4. The RAF does not have a promotion policy. When a position becomes vacant interested employees may apply and compete with other internal and external candidates for appointment to the position, based on the RAF’s Resourcing Policy. Consequently, it may happen that an official with a higher qualification does not apply, or that an official or external candidate with a lower qualification scores better overall in the resourcing process which score could be based on performance in the interview, techical assessment, psychometric assessment, etc., depending on the level of the position.

8. RAILWAY SAFETY REGULATOR (RSR)

1. The Railway Safety Regulator (RSR) salaries are governed by the RSR Remuneration Policy, as approved in September 2014. All salary scales are benchmarked within the South African Industry by Remuneration Consulting organizations. The RSR’s affordability and pay philosophy determines the salary pitch (25th, 50th or 75th) for the RSR in the market.

2. Officials within the RSR are remunerated differently within their respective salary and job bands depending on the outcome of both job evaluation and recruitment offers made. These recruitment offers are based on the level of qualification and experience of the individual candidate as per the job requirements, as governed by the relevant Labour law legislation and RSR Recruitment and Selection Policy, Job Evaluation Policy and job evaluation outcomes.

3. As per the RSR Conditions of Employment, dated September 2014, a Total Cost To Company remuneration methodology is applied. Section 6 of the said conditions of employment stipulates: “It is a mandatory requirement that all Employees of the Regulator must belong to a medical aid while in the employ of the RSR. Membership to a spouse’s medical aid will be sufficient to fulfill the requirements of this section. Employees who are members of registered medical aid schemes are not obliged to structure for an employer contribution towards the scheme”.

4. The RSR Talent Management Approach, read with the RSR Performance Management policy provides for recognition of high performance and dedication to the RSR Strategic objectives, values and vision. Promotion within the RSR is based on qualification, experience and a sustained level of high performance. Qualification per se does not determine promotion, but rather suitability, contribution and cultural alignment.

9. ROAD TRAFFIC INFRINGMENT AGENCY (RTIA)

1. The salaries and salary scales of the Agency are determined by the Department of Public Service and Administration ( DPSA).

2. Officials on the same level are not remunerated the same, due to the fact that some are on higher salary ranges within a level.

3. Every employee has medical aid as part of their remuneration package, however some officials choose not to utilise the benefit due to the fact that they are on their spouses medical aid and some just choose not to utilise the benefit.

4. No officials with lower qualifications got promoted above those with higher qualifications.

10. ROAD TRAFFIC MANAGEMENT CORPORATION (RTMC)

1. The Salaries of the Road Traffic Management Corporation are reviewed annually as per the outcome of the bargaining chamber negotiation and are based on the Patterson Remuneration Model.

2. Salaries are negotiable with newly appointed employees taking into consideration RTMC salary bands, the respective employee’s package from the previous employer, experience and market comparative analysis.

3. All RTMC employees are on a Total Cost to Company (CTC) salary package and they are allowed to join any medical aid of their choice.

4. There is no promotional policy within the Corporation, all posts are advertised and the successfull candidate determined through the recruitment process is appointed.

11. SOUTH AFRICAN NATIONAL ROADS AGENCY LIMITED (SANRAL)

1. SANRAL salaries are managed within the framework of the SANRAL Remuneration Policy which is approved annually at the Annual General Meeting with the Minister of Transport. The salary scales have been designed specifically for the organization and the grading system is aligned with the Paterson Modern system. The salary scales are periodically benchmarked against the DPE guidelines and the market.

On an annual basis salaries are reviewed and adjustments made using the individuals’ performance in comparison with his/her peers in the same grade. The formula below is used and taking into account each individual’s merit rating and the grades’ average merit rating.

The formula is as follows:

M = Average merit rating for the grade

A =Percentage change or adjustment of the pay scale of the grade: average adjustment

R = Merit rating for the individual

C = Current Cost to Company for the individual

P = New Cost to Company for the individual after the adjustment

P = (1 + (A+ ((R - M) / M x A))) x C

2. The SANRAL salary scales are broad banded and as such there is an overlap between the maximum of the grade and the minimum of the next grade. It is therefore possible for a lower level employee to earn more than one at the bottom end of a higher grade. This allows for flexibility based on individual employee expertise and experience. This flexibility is also needed to attract and retain scarce technical skills and pay a premium for engineers from designated EE groups. Due to the shortage of technical, particularly engineering skills in South Africa and globally, attention needs to be paid to appropriately remunerating employees who possess these critical skills as one way of retaining key staff in critical grades.

3. SANRAL has a medical aid scheme as part of the benefits package and employees are only allowed to opt out of the scheme on condition that proof is provided confirming that they are on a private medical aid.

4. Promotions at SANRAL, as is practice in Government, only happen through a formal recruitment process that is governed by prescribed minimum qualification requirements in accordance with the recruitment policy. Where cases of irregularity are reported, investigations are conducted and where warranted corrective action is taken.

 

13. SOUTH AFRICA CIVIL AVIATION AUTHORITY (SACAA)

1. The South African Civil Aviation Authority (SACAA) salaries are determined in line with the approved salary scales which are linked to job grades. The scales are benchmarked with the market using remuneration service providers.

2. The scales are broad banded and remuneration may differ based on experience, qualifications etc. however within the appropriate job pay scale.

3. Medical aid is compulsory unless employees can provide proof that they are in their spouse’s medical aid. Currently all employees are covered.

4. The SACAA has no ad hoc promotions. All promotions happen after a proper recruitment process which considers minimum requirements of the job.

NW3071E

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