Municipality loses third bid to dishonor wage deal
The bargaining council found that the municipality failed to provide evidence there were legitimate grounds for it to deviate from the salary and wage collective agreement reached in September 2021.
The Newcastle Municipality’s financial problems have gotten worse after its most recent application to be exempt from implementing staff wage increases was denied by the South African Local Government Bargaining Council (SALGBC).
Ruling in favour of the unions, SALGBC commissioner, Nonhlanhla Dubazane, found that the municipality failed to provide reasonable justifications for its refusal to abide by the terms of the 2021 wages collective agreement beginning by discrediting the COVI19 pandemic excuse explaining that the Constitutional Court has said the pandemic is a matter of law.
According to Dubazane the municipality cannot use financial constraints as a valid excuse as “the applicant knew fully well its financial circumstances before concluding the 2021 wages agreement and therefore cannot claim that its financial situation was unforeseen or unexpected during arbitration with the unions.”
Following the judgement, municipal workers gathered at the Farmers Hall on Tuesday (April 16) for a special meeting chaired by SAMWU to discuss the judgement and to plan the way forward.
The Newcastle Advertiser spoke to Chairperson for the local branch of SAMWU, Nhlanhla ‘China’ Mfusi, who stated that the workers would accept nothing but the full payment that includes the wage increases, salary notches and back pay due to the workers.
In their scathing response, trade unions SAMWU and IMATU unequivocally stated that the municipality would be able to afford the increases due to the marked improvement of the municipality’s finances.
Additionally the unions note that the municipality continues to employ contract workers, procure private security services and raise the wages of the councillors, which is further evidence that the municipality is not financially constrained.
“All I’m trying to say is, if there is money, why isn’t it spent on the employees?” stated Mfusi.
SAMWU has vowed to go to any lengths legally to ensure the workers receive what is due to them.
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