Publications
Partners
After deadlocked talks, arbitration and a looming strike, local government wage negotiations ended on Wednesday with municipal workers agreeing to a collective three-year deal, starting off with a 3.5% increase.
The South African Local Government Association (Salga) had been in negotiations with the South African Municipal Workers Union (Samwu) and Independent Municipal & Allied Trade Union (Imatu) since March.
Following Wednesday’s deal all municipal employees will receive 3.5% increase, with effect from 1 July 2021, along with once-off non pensionable cash allowances. Those earning R12 500 or less at July 1 will receive a once-off amount of R4 000 and those earning more will get R3 000.
When the matter went into arbitration in July, Samwu had previously demanded a R4 000 salary increase across the board and a sectoral minimum wage of R15 000. At the time the union wanted a certificate on non-resolution "paving way for a nationwide strike action in all of the country's 257 municipalities and their entities".
"Reaching the deal was no easy feat as negotiators in the bargaining council deadlocked several times leading to a conciliator to be brought in after a facilitator’s proposal in August 2021 also failed to conclude the negotiations," Salga said in a statement.
"The new collective agreement represents a compromise for all the parties and on the other hand, it gives municipalities who are in financial distress a lifeline and a breathing room until 2023. It also means that should municipalities experience even more difficulties going forward, they will have an opportunity to revisit the terms of the agreement."
This deal comes as local government audit outcomes released by the Auditor-General in June showed "indications of a collapse" in the financial health of South Africa's municipalities that provide residents with electricity, water and vital basic services.
Get the biggest business stories emailed to you every weekday.
Go to the Fin24 front page.
