Business Live reports that South Africa’s largest municipal workers unions are criss-crossing the country seeking a mandate after the completion of wage talks at the SA Local Government Bargaining Council (SALGBC) which resulted in facilitators tabling their proposal for parties to consider. The South African Municipal Workers Union (SAMWU), the Independent Municipal and Allied Trade Union (Imatu), and SA Local Government Association (Salga), the employer body representing the country’s 257 municipalities, held three rounds of talks from July 15-19, July 23-26 and August 12-15.
The unions tabled a joint list of revised demands for an across-the-board increase of 8% in the first year, the consumer price index (CPI) plus 2% in the second year, and CPI plus 1.5% in years three to five. SAMWU initially motivated for a one-year 15%, or R4,000, pay increase, while Imatu proposed a 10% pay hike. The inflation rate eased to 5.1% in June from the 5.2% in April and May. The Reserve Bank expects inflation to average 4.9% in 2024. The facilitators’ proposal came after Samwu and Imatu rejected Salga’s revised offer from 3.5% to 3.75% in the second round of pay talks in July. According to the proposed offer, which the unions rejected “in its totality”, those earning R22,000 a month or below would get a one-off ex gratia payment of R3,000.
In their facilitators’ proposal, dated August 15, which Business Day has seen, principal facilitator Duduzile Madubanya and deputy Lucas Mabusela, proposed a five-year wage deal for increases of 6% in the first year, 4.5% in July 1 2024 and an additional 1.5% increase effective March 1 2025. From 2025/26 to 2026/27, the facilitators proposed an increase of CPI plus 0.75%, and CPI plus 1.25% in the outer years of the agreement. In the event CPI is less than 4% workers shall receive a 4% wage increase (from years two to five) and if it is more than 7%, the wage increase shall be deemed 7%.
Madubanya and Mabusela proposed the homeowner allowance be reviewed from the current rate of R1,066.41 by the same salary increase percentage of 4.5% to R1,109.07 from July 1, 2024. “The minimum wage shall be reviewed from the current R9,531.54 by 4.5% to R9,960.45 from July 1, 2024, and a further adjustment by 1.5% to R10,109.85 from March 1 2025,” the facilitators proposed. “The parties should immediately commence their mandate seeking processes and have until 2pm on September 2 to formally communicate their acceptance or nonacceptance of this proposal in writing to the SALGBC.”
When contacted for comment, Papikie Mohale, spokesperson of SAMWU, a COSATU affiliate, which represents 160,000 of SA’s nearly 300,000 municipal workers, said the union was consulting its members for a mandate on the proposal. Salga said: “Should all the parties endorse the proposed salary and wage agreement it will come into operation with effect from July 1, 2024 and shall remain in force until June 30 2029. “This will be the first ever salary and wage agreement spanning a five-year period ever obtained in the history of the bargaining council and will go a long way in ensuring the much-needed labour stability in the sector.”
by Luyolo Mkentane