Signing of Tshwane’s R10 billion wage deal postponed as unions and city discuss backpay and implementation timeframe disputes.
The long-awaited signing ceremony of the wage settlement agreement between the City of Tshwane and organised labour representatives from the South African Municipal Workers’ Union (Samwu) and the Independent Municipal and Allied Trade Union was postponed to next week.
Samwu Tshwane regional secretary Donald Monakisi confirmed the signing scheduled on Wednesday and that Samwu was happy with the progress made so far, despite Samwu Tshwane regional chair Lehlohonolo Maphatsoe’s comment that the workers were not totally in agreement with everything in the settlement.
Maphatsoe said members agreed to the 3.5% being implemented in March, but not with the timeframe of 2029 proposed by the city.
Signing of Tshwane’s R10bn wage deal postponed
City of Tshwane spokesperson Lindela Mashigo said last week all the parties agreed that backpay should be settled over three years and calculated from 1 July, 2021 on basic pay only.
“The SA Local Government Bargaining Council’s ruling in favour of organised labour obligated Tshwane to implement the 3.5% increase backdated to 1 July, 2021.”
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Last week, DA Tshwane mayoral candidate Cilliers Brink walked out of council and voted against the adjusted budget because he said the backdated salary increases, which the city could have taken on review to the Labour Court, have widened the city’s deficit.
DA Johannesburg caucus leader Belinda Kayser-Echeozonjoku confirmed on Tuesday that they have formally served the City of Joburg with legal papers to stop the implementation of an unfunded R10 billion salary agreement concluded with the Samwu.
Kayser-Echeozonjoku said it threatens to push the municipality deeper into a financial and service delivery crisis.
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“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,” she added.
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Kayser-Echeozonjoku said this decision is fiscally reckless.
“The city cannot plead poverty when it comes to infrastructure maintenance, yet it finds R10 billion for an unfunded wage agreement.
“This contradiction exposes an administration that has lost its priorities,” she said.
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