Water utility must pay housing allowance

MHLATUZE Water (MW) must implement the arbitration award reached during a hearing between the South African Municipal Workers' Union (SAMWU) members of the Amanzi Bargaining Council (ABC) last month.

This follows strike action on Friday that affected operations at the Nsezi and Jozini water treatment plants.

Workers downed tools after the agreedupon housing allowance did not reflect on their pay slips, and urged the company to implement the commissioner's decision for which the bargaining council members had signed a Collective Agreement (CA) with the employer.

In a letter signed by Moketenyane Moleko, MW's general manager of corporate services, dated

28 October 2022, MW said the board had resolved that management implement the arbitration award in respect of the housing allowance to the staff within the bargaining unit.

“The board has requested management to determine the value of backpay in the housing allowance from the time the staff were converted from basic plus benefits and allowance to the current total salary package,” the letter reads.

Furthermore, the letter states that, as per the arbitration award, management has derived the backpay amount to be paid to staff for the period 1 July 2019 to

30 June 2022.

In an arbitration award by commissioner Moahloli Nyama signed on 3 October 2022, he said the application of clause

2 of the CA means each employee must receive a housing allowance benefit of

R3 000, and such must reflect in the pay slip.

According to MW, this was not implementable and would result in audit findings against the company.

“It is my considered submission that the difficulty of implementation of clause 2 of the CA by [MW] is a matter that an IT payroll specialist can deal with to ensure the housing allowance of R3 000 is properly reflected on the employees’ pay slips," said Nyama.

"The reflection would also ensure proper tax compliance, as an allowance is