SALGA strikes ‘game-changing’ 5-year wage deal with unions SAMWU and IMATU
The two labour unions and the South African Local Government Association settled on a number of conditions, including a 6% wage hike in the first year of the agreement.
- South African Local Government Association (SALGA)
- South African Municipal Workers Union (SAMWU)
- Independent Municipal and Allied Trade Union (IMATU)
SAMWU members express their dissatisfaction with wages on 22 August 2024. Picture: Facebook/Official SAMWU
JOHANNESBURG - Local municipalities across the country have averted disruptions to service delivery following a five-year wage deal.
After three intense rounds of negotiations and threats of a shutdown, facilitators at the South African Local Government Bargaining Council have found common ground between unions and municipalities.
Two labour unions and the South African Local Government Association (SALGA) settled on a number of conditions, including a 6% wage hike in the first year of the agreement.
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The unprecedented agreement is backdated from July this year, and is set to run until June 2029.
The South African Municipal Workers’ Union (SAMWU) and the Independent Municipal and Allied Trade Union (IMATU) initially wanted an 8% pay hike, but cash-strapped municipalities told workers they could not afford exorbitant increases.
SAMWU, IMATU, and SALGA have now agreed to a 6%increase in year 1, CPI plus 0.75% increase for years two and three, and CPI plus 1.25% increase in years four and five.
This applies to more than 300,000 employees across the country’s 257 municipalities. Municipalities unable to afford the costs of the increases will be entitled to apply for exemption from the agreement.
This will include a mediation process, which, if unsuccessful, will be followed by an exemption hearing conducted by an arbitrator, assisted by a financial expert.
'FIRST OF ITS KIND'
IMATU’s general secretary Johan Koen said the deal was a game-changer.
“This 5-year salary and wage collective agreement is the first of its kind for the local government sector. It guarantees wage increases for the next five years that will assist our members to cope with the rising cost of living, while at the same time ensuring labour peace and stability for the sector during this period.”
While Koen admitted the agreement was negotiated under tough conditions, he believes the long-term deal will pay off.
“IMATU has also given a firm commitment to engage with SALGA on methods to optimise productivity in the sector over the next five years, and we will give serious attention to this issue.”
Workers earning less than R22,000 will also get a once-off housing allowance of R2,000 in the first year. The homeowners’ allowance and the maximum employer medical aid contribution are expected to increase by 4.5% for the current financial year.
For years two to five, these allowances and contributions are set to increase by the same percentage as the across-the-board salary increase.
Unions believe the long-term deal will provide municipalities with fiscal predictability amid financial constraints, as well as improve planning and service delivery.