Municipal wage bill could hit nearly R100-billion a year

South Africa’s municipal wage bill could increase to just under R100-billion a year - if worker unions get their way.

This comes amid a deadlock in wage negotiations between municipal labour unions and the South African Local Government Association (Salga). Both parties have agreed to go back to their constituencies to talk over the two competing wage offers - as well as a proposal from an independent facilitator - in the hope that the current stalemate can be resolved.

The final round of salary and wage negotiations started in Durban on Monday and finished on Wednesday.

Trade unions want: - An 8% increase; - A minimum wage of R7393.00; - “Significantly above inflation increases” for the second and third year of the three year wage agreement; - A R378 non-pensionable allowance for employees that do not qualify for mortgages‚ but earn too much to get RDP (Reconstruction and Development Programme) houses; and - Increase the threshold for these employees from R8‚000 to R15‚000.

Salga spokesperson Sivuyile Mbambato said these demands will increase the municipal wage bill from the current R87.3-billion a year to R94.9-billion.

Salga is offering a 6.6% increase with inflation-linked increases over the next three years. Salga represents the country’s municipalities at the South African Local Government Bargaining Council (SALGBC).

A facilitator has proposed the following: - 7% salary and wage increase from July 1 this year; - Employees who earn R9000 or less per month shall get a further 0.5% increase from January 1 next year; and - The minimum wage‚ the homeowner’s allowance and the medical aid employer contribution will be adjusted by the percentage of salary increases for the three year period of the salary and wage agreement.

South African Municipal Workers’ Union (SAMWU) said in a statement they will tell SALGBC whether it accepted or rejected the facilitator’s proposal.

“The Special Central Executive Committee is the structure which would mandate the union to either accept the offer or to lodge a dispute and sanction as strike action in line with the union constitution as the agreed number of negotiation rounds he now been exhausted‚” it said.