SECURITY SERVICES EMPLOYERS ORGANISATION

1 SECURITY SERVICES EMPLOYERS ORGANISATION Registered with the Department of Labour as an EMPLOYERS ORGANISATION (reference LR 2/6/3/831) Suite 147 Telephone : 083 272 1373 Postnet X 2 Telefax : 0866 709 209 HELDERKRUIN 1733 Email : SOUTH AFRICA 1 August 2011 TO WHOM IT MAY CONCERN As specified in Government gazette number 32524 of 25 August 2009, the following processes were scheduled to take place during the three year lifespan of the gazette With effect from 1 September 2009, a salary increase as negotiated between the employer organisations and various trade unions. With effect from 1 September 2010, a salary increase linked to the annualised CPI (plus 2%), with a minimum of at entry level, together with the abolition of the Grade E level SECURITY officer.

2 These were formalised per government gazette 33509 on 27 August 2010. With effect from 1 September 2011, a further increase, linked to the annualised CPI, recently announced by Stats SA as 5%, (plus 2%), with a minimum of 7% at entry level, together with the abolition of the lowest area (Area 4), the latter now being consolidated into Area 3. This increased will be formalised per government gazette during the month of August 2011. In addition, the contribution towards every employee s subscription to the Private SECURITY Sector Provident Fund will be increasing to each of the employee s basic salary with effect from the same date.

3 The combined impact of the abolition of Grade E in 2010 and the consolidation of Areas 3 and 4 in 2011, together with the annual increases does result in a more significant impact on the consumer, but it must be understood that these steps were taken to raise the remuneration and qualification at entry level for the entire private SECURITY guarding industry on a national basis. The benefits thereof should be realised in the near future. Furthermore, it must be pointed out that all matters relating to remuneration and conditions of employment are legislated by the Minister of Labour and the minimum standards specified therein must be applied by all SECURITY service providers, as well as in-house EMPLOYERS of SECURITY officers.

4 Failure to do so would lead to prosecution by the Department of Labour and the Private SECURITY Industry Regulatory Authority alike, with both the service provider and the consumer liable for fines and restitution of any underpayments. Please feel free to visit our association website at for copies of the abovementioned government gazettes and up to date information regarding forthcoming wage negotiations for 2012 to 2014, due to commence in August 2011. Best regards, Yours in SECURITY , SECURITY SERVICES EMPLOYERS ORGANISATION CLINTON PHIPPS COSTA DIAVASTOS TONY BOTES CHAIRMAN PRESIDENT SECRETARY