TO: The WSU Community FROM: Prof LR van Staden DATE: 1 August 2013 UPDATE ON THE PRESENT IMPASSE Today is the 8th day of the labour strike and subsequent Lock out which includes the implementation of ‘no work, no pay’ for all staff (excluding those groups identified in the Lock out Notice) as of 29 July, 2013. Strategies to bring the situation back to normal so that teaching and learning may re-commence are being urgently devised by the management team. We will announce our course of action immediately a decision is taken. In the meantime, Senior Management is working on a detailed Catch-up Plan to rescue the academic year and assist our students to make up the lost time. We must ensure that we meet the number of academic days set aside in this semester’s calendar. 60 teaching days will meet this requirement. I express my deep appreciation to our students who have exercised maturity and extreme patience during this worrying time. To put the present labour impasse into context, please take note of the following: • WSU was placed under Administration by the Minister of Higher Education and Training, Dr BE Nzimande MP, on 31 October, 2011 after the University was investigated by an independent assessor and found to have serious problems. The University was in fact described as ‘bankrupt.’’ • A significant factor was the high payroll cost which consumes around 75% of the institution’s annual budget. Furthermore, recent benchmarking nationally with other universities has shown that WSU staff are well-paid in the sector. • In past years some salary increases were funded from ring-fenced funds (funds set aside for specific purposes such as buildings, maintenance and equipment). This practice is not permitted according to funding rules and has resulted in WSU having to pay back an amount of R375 million to these ring-fenced funds. • In 2012, in the first year of the Administration period, there was no funding available for a salary increase. As part of the stabilisation of WSU, the Department of Higher Education and Training gave an amount for a 10% of basic salary, once-off amount instead of a pensionable increase. • In 2013, the WSU financial situation has improved marginally and we anticipate a break-even budget which is a promising sign. In this context of saving WSU from bankruptcy and potential closure, a 4,25% pensionable salary increase, backdated to January 2013, is the only offer management can make. This increase amounts to R23,5 million which is affordable at this point. To offer any more than this would be irresponsible and against the principles that guide the Terms of Reference of the Administrator in his appointment to turn the University around. • WSU is improving its financial situation slowly: the University has no overdraft; the University is paying its creditors; the University is able to pay salaries every month … these signs are symptomatic of an encouraging trend towards stability. I can assure all our stakeholders that serious efforts are being made to bring back normality and stability to our University as soon as possible. Professor L R van Staden Administrator
Posted on: Thu, 01 Aug 2013 12:05:41 +0000
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