Samwu says the City of Joburg must urgently implement the wage deal.
Analysts and the mayor of Johannesburg himself have warned residents they are in for a rough ride after the city struck a controversial R10.3 billion wage deal with the South African Municipal Workers Union (Samwu).
Last week, the DA failed to stop the implementation of this wage deal, which was expected to take effect in March this year. It brought an application to interdict the implementation of this deal, but it was dismissed for lack of urgency. The matter will now have to be ventilated through normal court proceedings.
The DA suggested the money for the increase likely could have come from cuts to the budgets of power utility City Power, water management agency Joburg Water and waste services Pikitup.
These three entities have struggled over the last year, particularly with prolonged electricity and water outages and worsening waste collection services.
Joburg’s services are getting worse
Julia Fish, from Joburg Community Action Network (Joburg CAN), told The Citizen that the agreement between the city and Samwu is already affecting service delivery, as money has been shifted from maintenance budgets and the operations of key service providers.
“This will directly affect what the city can do about leaks or needed overtime to cover multiple missed refuse collection rounds in recent weeks.
“The politicisation of the political facilitated agreement (PFA) will also have an effect on wards seen to support parties that oppose the current implementation. Residents and municipal workers who just want their fair due are being caught in the middle of campaigning on all sides,” she said.
She said that while workers deserve fair wages and increases, there seemed to be a lack of planning and disclosure of how this will be implemented and afforded.
“The workers deserve what they were promised over the past 10 years, but other things will and should be sacrificed to make that agreement a reality. For example, bonuses for altered or lowered performance standards, additional exorbitant contractors and diminishing C-suite salaries.”
‘Apocalyptic’
DA Joburg mayoral candidate Helen Zille told The Citizen that Johannesburg faces an “extremely acute financial crisis”.
“The bulk of the money earmarked for the R10.3 billion will have to be taken from service delivery budgets at a time when basic services are collapsing. This move will finally drive Johannesburg over the precipice.
“The only place that money can be taken away from to fund this R10.3 billion salary agreement is to take it away from capital and maintenance budgets,” she said.
The DA argued that the wage deal is unfunded and that its implementation will lead to the crippling of service delivery, since money will be taken from other departments to fund the deal.
“The only place that money can be taken away from to fund this R10.3 billion salary agreement is to take it away from capital and maintenance budgets.
“Johannesburg already has one of the lowest capital budgets, in relation to its population, in the country. And it definitely already has the lowest maintenance budget. This has led to the state the city is currently in. Pushing Joburg further over the edge will be apocalyptic.”
North West University political analyst Andre Duvenhage said he also has no doubt that service delivery will be affected by the deal.
“We know Johannesburg is already falling apart. There is literally no functioning infrastructure anymore. I have no doubt the ANC will be the ones that benefit if this deal goes through,” he said.
Short-term pain, long-term gain, says Morero
However, Mayor Dada Morero has defended the city’s decision to honour the deal.
On Monday he told councillors that the city is justified in taking this “bold step” to improve the quality of life for its residents.
“It is important to note that all of us have a commitment, a responsibility to the workers of the City of Joburg. At the same time, employees of the city have a responsibility to the residents of Joburg and, of course, to the employer.
“They should also be willing to go a long way and an extra mile towards contributing towards service delivery and serving the residents of Joburg,” he said.
He admitted there would be short-term pain but suggested it was necessary for long-term gain.
“Yes, of course it will push our employee costs higher, but at a particular point we will be able to get out in the next three to four years and balance our budget much better, having dealt with this matter once and for all.”
Will there be enough money for future budgets?
During the same council meeting, opposition parties said the city is struggling to collect revenue, and they are worried about the financial standing of the metro.
Fish supported this, saying the city is “definitely not collecting enough money to cover the PFA”.
“Revenue collection is down, and the city is not covering its bills to bulk electricity and water suppliers, and is growing the maintenance backlog needed on critical infrastructure.
“However, the city has long since promised to pay workers a fair salary benchmarked to other municipalities and a fair scale. Instead of implementing the PFA in the regular 2025-26 budget, or curtailing exorbitant increases to the CEOs of multiple municipal-owned entities, the PFA has now become a bargaining chip in a budget that is struggling to balance escalating staff costs instead of service delivery in an election year,” said Fish.
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Samwu tells workers how to vote
Samwu provincial secretary Mpho Tladinyane this week appealed to workers not to vote for the DA in the upcoming elections.
“Workers must use their vote as a weapon to defend their interests. They must reject those who seek to undermine their livelihoods.
“They must reject those who have demonstrated, in practice, that they are intent on reversing the gains that workers have fought for and secured.
“Whatever workers do, they must reject the DA. Its record is clear. Its actions are consistent. It does not stand with workers. It stands against them,” said Tladinyane.
Zille denied that the DA was anti-workers.
“If Johannesburg goes bankrupt, the workers will feel it very directly when salaries cannot be paid at all.
“And what about the poor and unemployed who live in shack settlements? The more the capital and maintenance budgets are stripped, the more deprived they will be as services are cut even further.
“Our move is strongly pro-poor and pro the survival of Johannesburg. And that is in the interests of the workers.”
Tladinyane also called on the City of Joburg to proceed with the “immediate implementation” of the PFA.
Political tool
Duvenhage said he has no doubt that the PFA is being used by the ANC to secure support from workers aligned to Samwu.
“This is just a ploy to buy votes, because at the moment the picture is looking very negative for the ANC in Johannesburg and other areas.
“This is, in a way, a corrupt relationship. It is understandable why opposition parties would come against this initiative.”
He claimed some of the workers in Johannesburg are already well paid because of cadre deployment.
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