PAWUSA News Update

COSATU JMC TASK TEAM REPORT ON GEMS

1.      Background

GEMS was conceived primary as a public service medical aid scheme to that extended the PSCBC 1/2006 was signed for that purpose, however it as emerged during the current round of negotiations that GEMS is run as an ordinary private medical aid scheme. Not only is GEMS not properly run it is becoming extremely expensive, thus defeating one of the fundamental objectives of GEMS.GEMS was established to give effect to the right to health care as per the constitution by providing universal access to affordable, and quality health care to all public service employees.

In ensuring that GEMS attains its founding objectives, it is imperative that the control and running of the scheme should be reclaimed by members.

We propose amongst other things the amendment of rules, in particular rules relating to governance and benefits.

2.       Composition of the board

The number of trustees shall be increased to sixteen (16), with an additional four (4)to the twelve (12)

• Labour and employer shall have four (4) members each to the board respectively
• Seven (7) trustees to be elected by members at an AGM
• One (1) trustee to be elected by members to come among the pensioners.
• Legal opinion on composition of board around the three and four year term

3.      Election process

• Vacancies of trustees ( use MEDCOR rules)
• Med-cor rules will be used for this purpose (Rules: Vacancies of trustees and appointment of trustees for the next term of office).
• Rule 19.35 of Gems to be looked at further. (In terms of whether this should be amend or applicable to both parties). These rule must amended to say the trustee must be a member of GEMS.
• Rule 19.38 of Gems to be reconsidered.( rule to be amended in so far as nomination)
• Rule 19.8.1 and 19.8.2, be removed.

4.      Role of AGM

• Quorum (150) members
• No proxies will be used at the AGMS.
• Trustees shall not have voting rights in the AGM
• The AGM to also Include election of trustees

5.      Eligibility to membership

Employees of gems shall not have voting rights in any General meeting of the scheme

6.      Powers of the board/ roles and responsibilities

Trustees shall not vote at the AGM

7.      Powers of the Principal Officer

8.      Term of office

•   The term of office shall be three years
• Trustees shall be eligible for re-election

9.      Purpose of the scheme

• Alignment of the scheme with the purpose and intention of resolution 1 of 2006
• Rule 22 and its subsections must be reviewed
• Accessibility to lowest paid government employees

10.  Contributions

• Salary bands must be reviewed
• The scheme must only increase contributions annually
• Employer contribution to be in line with the government subsidies (financial year end of GEMS must be in line with the financial year end of government (matter to be further discussed at the pscbc)

11.  Benefits including pensioners

• A research must be conducted in terms of the benefits and benefit option
• Research on service providers
• Benefits which are linked to specific providers

APPROACH TO THE GEMS AGM

Points of submission for the agenda points (submission to be done ten (10) days prior to the AGM

• The  status of the coming special AGM
• The appointment of the auditors
• The election process
• The composition of the board ( The status of the interim board)
• The consultation of stakeholders( political discussions)
•   Eligibility of membership
• Amendments of the GEMS Rules
• Adoption of financial report
• Engage the registrar on election process

RECOMENDATIONS

• Seek legal opinion on the status of the current board and compliance to election procedure rules(19.8.3 and 19.38)
• Engage GEMS board on the approach to the upcoming special General meeting with the view finding a common and amicable solution on the composition of the board, the nomination/election process and a possible way forward
• A letter to be written to the registrar raising complaints and concerns regarding the status of the current board of trustees.