The ANC has been accused of trying to appease Samwu while neglecting the financial reality of the city.
ANC secretary-general Fikile Mbalula has defended the City of Johannesburg’s controversial R10.3 billion wage agreement with the South African Municipal Workers Union (Samwu).
Last week, the ANC failed to secure enough support to ensure that the agreement, described as the Proposed Framework Agreement (PFA), is adopted by the council.
Opposition parties argued that implementing this wage deal could cause the city to collapse financially. There were also issues with the lack of transparency regarding the wage deal.
Speaking at a Samwu national congress in Mpumalanga on Tuesday, Mbalula said the party would defend the deal.
“We have reached a monumental agreement with Samwu, and I would like to assure you that, as the ANC, we are going to defend it in Johannesburg.
“The budget adjustment was not passed in Johannesburg because the DA is arguing with others that we must do away with this agreement, and we have said no within the coalition. That agreement must stand in as far as the settlement of wages increases with Samwu,” he said.
Mbalula told the union that the ANC had not taken a “sell-out” position on the matter.
“We are operating in an environment of uncharted waters,” he said.
Previously, The Citizen reported that Samwu and the municipality had agreed on the figure of R10.3 billion, based on accumulated debt resulting from a 1995 halt to salary progression, as well as the gap between the pay packages of senior officials and employees on the ground.
The Citizen understands that the adjustment budget will be brought back to council on Friday for another vote. The ANC needs 136 votes to ensure the implementation of this wage deal.
All eyes will be on the EFF at this budget vote since the party had rejected voting for the implementation of the PFA last week, claiming that the city was prioritising worker salaries over service delivery. But there is also background talk that the EFF is using the Joburg adjustment budget to negotiate for seats on the mayoral committee in the City of Ekurhuleni.
Why grant Samwu R10.3 billion now?
A source close to these negotiations told The Citizen that the ANC is pushing hard for Samwu to secure the wage increase deal to gain its support for the upcoming local government elections.
“They have seen that they did not do well in the last local government elections, and they need support from the workers,” said the source.
Joburg Crisis Alliance
Meanwhile, Yunus Chamda from the Joburg Crisis Alliance (JCA) said the organisation is deeply concerned about the city’s overall financial health.
“Residents have observed that the city seems to be rotating services by moving resources around. If the city has a binding agreement, then it is a legal question that will have to be answered,” he said.
He also complained that workers at lower levels often lose out on fair wages while senior managers have enjoyed regular increases.
DA court case
Meanwhile, the DA in Johannesburg has formally served the city with legal papers to stop the implementation of what they described as an “unfunded” wage deal. They further described this deal as an agreement, a political deal between the ANC and its allay union, Samwu.
“At a time when residents are experiencing dry taps, irregular refuse collection, deteriorating roads, power outages, and increasing lawlessness, the city has chosen to prioritise an unaffordable wage agreement over restoring basic services.
“Instead of directing limited resources toward fixing pipes, repairing substations, maintaining roads, and restoring law and order, the administration is committing the city to a R10 billion agreement it cannot fund,” said DA caucus leader, Belinda Kayser-Echeozonjoku.
She said the DA is not opposed to inflation-based increases.
“This decision is fiscally reckless and irresponsible. The DA is not opposed to fair and lawful wage negotiations or inflation-aligned increases. However, any salary adjustment must be responsible, budgeted for, with proper financial analysis, and aligned with the city’s financial reality prior to final signed-off agreements.
“That money could and should be used for infrastructure maintenance and basic service delivery,” she said.