Unions reject 2.8% wage offer for municipal workers
MUNICIPAL workers’ unions have rejected a wage increase offer of 2.8% from local government.
Ahead of wage negotiations for the 2021/2022 financial year, the South African Local Government Association (Salga) proposed a 2.8% salary increase for municipal workers.
The proposal was sent to the South African Local Government Bargaining Council (SALGBC).
It is the middle body between Salga and the municipal workers' unions, namely the South African Municipal Workers Union (Samwu) and the Independent Municipal and Allied Trade Union (Imatu).
The current wage agreement (6.25%), which was agreed to in 2018, expires at the end of June. This means the unions have to negotiate with Salga again.
In a statement last week, Salga said its proposal was 1.5% below the projected consumer price index and a total freeze of increases on all benefits that are linked to salary increases. This included medical aid and pension fund benefits.
“Considering that the municipalities sector has been one of the hardest hit by the Covid-19 pandemic, these negotiations represent a critical point in efforts to save municipalities from complete financial collapse,” said Salga.
It said the proposal was for a three-year salary and wage collective agreement in order to continue to maintain stability in the local government sector, as well as support the sectors’ sustainability requirements and objectives.
Salga said given the devastation wreaked on the economy by the pandemic, the 2021 salary and wage negotiations would take place in a financially strained environment.
“Salga is cognisant of the deep recessions triggered by this pandemic, which is expected to leave lasting scars through lower investment, an erosion of human capital through lost work and schooling, and fragmentation of global trade and supply linkages. Some municipalities are already unable to afford the current wage costs and would indeed have to apply no more than a zero percent increase in the 2021/22 Medium Term Revenue and Expenditure Framework.
“As of December 31, 2020, 160 municipalities experienced a form of financial distress resulting in a serious material breach of financial commitments. Of these municipalities, 111 were experiencing severe financial distress resulting in persistent material breach of financial commitments.”
In its proposal, Salga called for the workers unions to consider the interest-based bargaining approach to these negotiations.
“This approach ensures that these negotiations deliver outcomes that will support the financial recovery of municipalities,” it said.
“Salga is urging all parties to meaningfully reflect on the proposal it has presented in the interest of service delivery and financial stability of municipalities.”
However, the unions are unhappy with a 2.8% increase.
Samwu is demanding:
◆ R4 000 salary increase for all workers
◆ R15 000 sectoral minimum wage
◆ R3 500 housing allowance
◆ 80% employer medical aid contribution and a 20% employee contribution
◆ 25% employer contribution towards pension
◆ Six months fully paid maternity leave and one month of fully paid paternity leave
Dumisane Magagula, the deputy general secretary for Samwu, which represents around 160000 members in South Africa, said the offer by Salga was spit in the faces of municipal workers.
He said employees had carried the country throughout the pandemic and continued ensuring that the delivery of quality services was not disrupted or interrupted. This, said
Magagula, was despite workers facing a greater risk of contracting Covid-19 in the workplace.
He said Samwu had demanded a medical aid standby allowance, and cellphone and housing allowances, all of which were frozen for the next three years by Salga.
“Our greatest concern is that Salga is hell-bent on punishing municipal workers for the coronavirus pandemic, a pandemic which is not of their own making.”
He said the high unemployment rate in the country was another reason for workers to get their demand.
“One worker in the country supports between four and seven dependants.”
He said Samwu was mobilising and readying members to conclude negotiations on the streets if need be.
Queen Mbatha, eThekwini regional chairperson and the deputy president of Imatu, which represents more than 70 000 workers, said while they were also unhappy with the proposal by Salga, they understood that the figure was not set in stone.
“We just had the first round of wage negotiations.
“We still have a long way to go before the wage is final. Imatu submitted an extensive wage position document for the purpose of motivating our demands.
“It highlighted the recent increases in the cost of living, the turbulent economic climate, and the negative impact thereof on the disposable income of our members.”
She said they had proposed a 9% increase and the fact that Salga proposed 2.8% was disheartening.
“They should have at least started at 3%. The percentage they proposed is way too low.”
Mbatha said they were positive that the next meeting in May would see higher percentages.
“At the moment, we are not too worried because we know it’s just the start.
“We are not downing tools just yet.”