WAGE increase negotiations for municipal workers got underway last week.The South African Local Government Association (SALGA), acting on behalf of 278 municipalities and over 200 000 municipal workers, is offering about four per cent, while other unions demand 15 per cent.
According to SALGA’s spokesman, Tahir Sema, the association was aware that the negotiations were taking place during a sensitive time for municipalities but was still looking forward to a positive outcome.
“We remain hopeful of a fruitful and speedy outcome. As SALGA we remain optimistic about the progress the negotiations have made so far and the positive spirit the unions have displayed,” Sema said.
But according to reports, two unions representing the workers, the South African Municipal Workers Union (Samwu) and the Independent Municipal and Allied Trade Union (Imatu), are unhappy with SALGA’s offer.
While SALGA’s offer is a little over 4% for year one and an inflation related increase plus 0.25% for years 2 and 3, the unions have demanded a 15% (or R4 000) increase on their pay and a minimum wage of just over R9 600, with a single year agreement.
“SALGA’s offer is for year one (2015/ 2016) 4. 4% (which is inflation linked). For years 2 and 3, SALGA has offered an inflation related increase plus an additional 0.25 %.
The current agreement expires at the beginning of July.
“In considering our offer, SALGA took into account a number of factors which include the critical constitutional mandate of municipalities to deliver services, the recent budget policy pronouncements by the Minister of Finance around the need to contain wage increases and changing the collective bargaining landscape,” Sema explained.
The association also considered recent labour law amendments, benefits of interest based bargaining coupled with a holistic/ mutual gains approach to negotiations, benefits of a multi-year agreement as opposed to a single year agreement, affordable and sustainable increases given the degenerating financial state of municipalities, the country’s macro-economic policy and the need to match salary increases to improvements of levels of service delivery.
Apart from wages and salaries, other issues to be deliberated over include union demand for increase in the minimum wage, medical aid contribution rate and home owner and rental allowances.
“Although these will be addressed, SALGA has indicated upfront that these demands will add an unnecessary burden on the budgets of municipalities and will impact negatively on service delivery obligations of municipalities.”
