THE country’s cash-strapped municipalities could be forced to fork out up to 15% in salary increases as wage negotiations in the local government sector continue.
However, SA Local Government Bargaining Council (SALGBC) deputy general secretary Nanicky Hlangwani has stated that the parties to the talks – the SA Local Government Association (Salga), which represents municipalities, and recognised trade unions, the SA Municipal Workers Union (Samwu) and the Independent Municipal and Allied Trade Union (Imatu) – have agreed to negotiate behind closed doors.
Samwu wants municipal workers’ salaries to increase by 15% or R4 000.
”Due to the sensitivity of the engagements and as per the facilitator’s instructions, the parties cannot provide any further details,” Hlangwani told all municipal managers and human resources directors across the country last week.
She added that the parties reserve the right consult with their members independently. The current negotiations are scheduled to last until August, with a dispute resolution process, if required, also scheduled for next month.
”The dispute resolution process is an optional round, which is reserved in the event that the facilitator’s proposal is not accepted.
This will mean that a deadlock must be declared and a dispute must be referred to the SALGBC for conciliation. The parties have agreed on a shorter period (seven days) notice for a conciliation process to be convened,” Imatu indicated earlier this year.
The union has highlighted the impact of the current cost-of-living crisis on the disposable incomes of municipal workers.
”We drew attention to the above inflation increases in the prices of four key areas of household spending such as food, electricity, transport and utilities. A detailed comparison was made with wage increases in other sectors and the financial impact of increases in the cost of housing and medical aid was also thoroughly dealt with,” Imatu said.
According to the union, the affordability of the wage demands, which is a crucial factor in negotiations, was addressed through a comprehensive analysis of the financial statements of municipalities.
”We focused on trends in revenue collection, available surpluses, and the impact of wage increases on the local government wage bill.
Imatu pointed out that the wage bill is currently at reasonable and sustainable levels, well within the range set by the National Treasury, and likely to remain there if wage increases are implemented,” the union explained.
It also pointed out that the excessive levels of wastage through fruitless, wasted and irregular expenses are a constant drain on local government finances and ordinary workers cannot be expected to bear the cost of years of financial mismanagement.
Imatu and Samwu are working together to consolidate their separate wage demands into a single joint demand.
Auditor-General Tsakani Maluleke has raised concerns that local government is losing billions of rand each year because of poor decisions, neglect or inefficiencies.
”Fruitless and wasteful expenditure has continued to increase. In 2021-22, it more than doubled, rising from R2.15 billion to R4.74bn. Since 2019, we have also identified non-compliance and fraud through our material irregularity process, resulting in an estimated R5.19bn in financial loss,” she explained.