LabourPREMIUM

Tshwane metro and Samwu set for bruising labour court battle

The city refused to implement a 3.5% salary hike for employees in 2021 and another 5.4% wage increase in 2023, citing a lack of funds

The SA Municipal Workers’ Union is an affiliate of ANC ally Cosatu. Picture: ANTONIO MUCHAVE
The SA Municipal Workers’ Union is an affiliate of ANC ally Cosatu. Picture: ANTONIO MUCHAVE

The Tshwane metro, which boasts a new administration following the removal of DA mayor Cilliers Brink, is set to battle it out with Samwu in the labour court on November 28 over the union’s demands for higher wages. 

This follows a recent labour court ruling to have Tshwane’s two review applications heard in November. They pertain to the city’s refusal to implement a 3.5% salary hike for employees in 2021 and another 5.4% wage increase in 2023 citing a lack of funds. It did not have the R600m needed to implement the wage agreement.

The municipality then applied to the SA Local Government Bargaining Council (Salgbc) to be exempt from implementing the wage increases, but the application was dismissed, spurring the city — under ousted mayor Cilliers Brink — to approach the labour court to review Salgbc’s decision. 

Brink has been credited for his efforts in trying to turn the city's finances around. In the 2021/22 financial year, the metro received an adverse audit opinion. In 2022/23 it registered irregular expenditure of R10bn, though its audit opinion improved to a qualified one.

Samwu general secretary Dumisane Magagula said the Cosatu affiliate had consistently opposed the review applications, “which we believe are driven by political motives rather than financial necessity, particularly from the DA-led administration”. 

“We once again urge the new political leadership in Tshwane to withdraw these review applications and engage in meaningful dialogue with Samwu. It is time to implement the 3.5% and 5.4% salary increases immediately. Municipal workers, who have diligently served their communities, should not continue to suffer due to past political decisions,” Magagula said. 

“The cost of living has risen sharply, and many of our members are now struggling with debt and poverty. These workers are not just numbers, they are individuals with families, facing daily hardships. If the new leadership truly cares about its employees’ welfare, it will prioritise their needs over political agendas.” 

Magagula said Samwu would assemble a “strong legal team to oppose this review application and ensure justice for workers”. 

“After years of hardship, there is finally hope. Municipal workers deserve the dignity of receiving what is rightfully theirs. Now is the time for Tshwane’s leadership to support their workers, not oppose them.”

The metro's new administration includes ActionSA councillor Dr Nasiphi Moya as mayor and ANC Tshwane regional chair Eugene Modise as finance political head, among others.

Samwu’s demands for higher wages in Tshwane are not uncommon. In July 2020, the metro implemented a 6.25% pay rise that added R45m to the monthly wage bill. The increase was part of the last leg of a three-year wage hike agreement signed at the Salgbc in 2018.

In August 2020, the capital city bowed to pressure by unions to implement a benchmarking agreement aimed at putting Tshwane municipal employees’ wages on par with those of other big municipalities.

At the time, the city warned the decision was likely to put extra strain on its finances as residents, companies and government departments struggled to pay for services during the Covid-19 lockdown.

Samwu later opposed a vetting process to remove ghost employees from the payroll. The decision to withhold the pay of more than 7,000 workers came two weeks after Tshwane agreed to implement the benchmarking agreement that would was set to cost the city R300m.

mkentanel@businesslive.co.za

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Comment icon