1. Presentation by Director, HR 28 July 2014 Presentation re HR Budget

2. Purpose of Presentation Communicate pressures regarding the HR Budget Growth in income for the University does not match HR budget expenditure and needs Changes in the LRA that will have consequences for how we operate Remind leadership of the challenges related to staff remuneration Confirm the commitment to paying our staff at the 50 th percentile within the context of what is affordable Our challenge is to limit those items in the HR budget that can be limited in order to maximise the annual adjustment for staff Request that in your budget submissions that you take these issues into account This requires that it is NOT “business as usual”

3. LRA amendments, still to be signed off by President Protection for those earning below BCEA threshold, i.e. R193 805 p.a from RU Does not matter if they are employed elsewhere e.g. UCT academic doing a series of lectures while on academic leave This is cost to employer (not basic cash) number Does not impact full-time academics or full-time support staff on grade 10 and above Does impact, if employed more than 3 months AND more than 24 hours per month (3 days per month) Those on temporary teaching contracts Teaching assistants (because of our practices in certain departments) Support staff on grade 9 and below Once employed for more than 3 months, needs to be treated no less favourably than an employee employed on permanent basis performing the same or similar work unless there is a justifiable reason If contract more than 24 consecutive months, “retrenchment costs” of 1 week p.a. of employment unless other employment is found Contract needs to be justifiable, otherwise needs to be permanent

4. Impact of LRA amendments In general, not vulnerable re justifying of contracts Teaching assistants in some departments where TAs are not being used to provide an opportunity for students to have work experience in the academy Need to be careful of ongoing contracts while restructuring or delaying filling of posts (unless for legitimate reason) Temporary teaching rates where the person is employed more than 24 hours per month AND for longer than 3 months Current TT rate New TT rate if >24 hours p.m. and 3+ months % difference R132 p.hR195 p.h48%

5. Impact of LRA amendments This additional cost would mean a 0.7% less in the annual adjustment for academics.

6. HR Staffing budget Central budget + Res Ops budget Pressures in the central budget HR staffing budget to not exceed 67% of Central Budget, 2014 budget was 68% Of Central budget Academic (post, other funding) = 54%, approx R207m Support (posts, other funding) = 46%, approx R175m In Academic budget 91.5% of budget is for academic posts 8.5% for other expenditure e.g. allowances, academic leave, temporary teaching, approx R17.5m In Support budget 94% is for support staff posts 6% for other expenditure e.g. temporary assistance, long leave, approx R11m

7. Other academic funding make-up, % of total Central budget Budget% of total Challenge, request, considerations Academic leaveR2.7 m0.7%Don’t reduce budget, shift by rates shift. Academic departments to look carefully at hours needed Temporary teachingR3.5m0.9%Opportunity for reduction here Student tutors and GABsR5.2m1.4%Would require fundamentally changing the way we teach. Not regarded as viable. Other: Dean’s allowances, HoD allowances, maternity leave, sick leave, merit awards, VC distinguished awards R7.5m1.9%Would require significant change to current remuneration, benefits and recognition practices. Not regarded as viable. Temporary assistanceR0.3m0.1%Another area for reduction

8. Other support funding Temporary assistance, 6%. All the students working in Library, IT labs, Library Other students employed on ad hoc basis Does not include sub-wardens (paid out of Res Ops budget) Maternity Leave costs Sick leave costs Over-time costs (these should be coming down about R0.5m because of 40 hours and LILO arrangement with NEHAWU) Ad hoc student assistance Ad hoc project assistance

9. Central Budget Income Shifts 56% of income from government, sector advised to not expect more than 6% increase in sector grant (not necessary what RU is receiving) CPI in June 2014, yoy: 6.8%, HEI is 9.8% Predicted CPI for 2015 varies between 5.4% and 6%, assuming 6%, HEI is likely to be 8% to 9% 34% is student income 10% is other income Assuming, 6% shift on block grant 8% shift on student income 7% shift on other income TOTAL income shift is likely to be 6.4%

10. Central Budget Income Shifts In order for staff to receive a 6.5% annual adjustment, the “other funding” budgets need to decrease by 2.5%. This is about R400 000 p.a. on academic funding. This is before any rate increases. 7% annual adjustment, other funding reduced by 7.5%

11. Budget process Your budget submissions to HR by 14 August 2014 HR to work with financial implications of requests If cuts are to be made, to work with Deans and Directors regarding % cuts to be achieved Deans to advise us of areas to cut for academic departments Directors to advise us of areas to cut for support departments HR to make final cuts if necessary

12. In closing Very challenging budget environment Block grant funding is being squeezed and there are limits to what student fees can be increased by Desire and need to afford a reasonable annual adjustment to staff LRA challenges Need to think very carefully about every cent requested in budget submissions particularly as regards temporary teaching and temporary assistance Your assistance is greatly needed in achieving this.