Municipal worker unions have 2 weeks to consider wage proposal after tense talks with SALGA
Unions representing municipal workers across the country have two weeks to mull a wage proposal following tense negotiations with the South African Local Government Association (SALGA).
- South African Local Government Association (SALGA)
- South African Municipal Workers Union (SAMWU)
- Independent Municipal and Allied Trade Union (IMATU)
FILE: Members of the South African Municipal Workers' Union (SAMWU) gesture during a strike over wage increases in Beyers Naude Square, Johannesburg, on 10 November 2022. Picture: LUCA SOLA / AFP
JOHANNESBURG - Unions representing municipal workers across the country have two weeks to mull a wage proposal following tense negotiations with the South African Local Government Association (SALGA).
This after a third round of wage talks wrapped up at the end of last week.
The two previous rounds ended in a stalemate, with two trade unions rejecting wage offers below their 8% demand.
The Independent Municipal and Allied Trade Union (IMATU), as well as the South African Municipal Workers' Union (SAMWU) previously refused to play by the terms of local government.
In the early stages of negotiations, the two trade unions drew attention to the above inflation increases in the prices of four key areas of household spending such as food, electricity, transport and utilities.
They also gave a detailed comparison with wage increases in other sectors and the financial impact of increases in the cost of housing and medical aid.
The unions blamed local government's refusal to play ball on the excessive levels of wastage through fruitless and irregular expenditure, with these losses draining local government finances.
The unions added that ordinary workers cannot be expected to bear the cost of years of financial mismanagement.
SALGA, which oversees all 257 councils across the country, previously said it couldn’t afford exorbitant wage increases.
Municipalities are already grappling with the dual challenges of shrinking budgets and increasing demands for public services.
National Treasury has warned that a majority of the country’s municipalities are financially distressed, recommending that wage increases be capped at 6%.
This move has further angered unions.
Facilitators at the South African Local Government Bargaining Council have now stepped in and issued a 17-page proposal on a salary and wage collective agreement.
Part of the proposal would be a five-year wage agreement, with a total 6% increase for the 2024/25 financial year.
Wages would then be increased by CPI + 0.75% for year two and three and CPI + 1.25% for year four and five.
The minimum wage would also be reviewed, increasing from the current R9,531 to R9,960 this year, before increasing to R10,109 by 2025.
Municipal workers under the agreement would also see an increase in the homeowner allowance and medical aid of 4.5% in the first year.
The facilitator’s proposal is not binding and only serves as a recommendation.
It’s understood that IMATU and SAMWU are yet to consult with workers on the proposal.
The document is expected to take centre stage when IMATU's national executive committee meets on Tuesday.
If the proposal by facilitators at the bargaining council is not acceded to by SALGA, IMATU and SAMWU, there are fears of a wave of crippling strikes by about 300,000 municipal workers.