Cash-strapped Tshwane ordered to increase employees' salaries

The City of Tshwane has been ordered to increase its employees' salaries by 5.4% for the year beginning July 1, within 10 days. 

The South African Municipal Workers’ Union (Samwu) said this followed a compliance order issued by the South African Local Government Bargaining Council (SALGBC) on Thursday for the city to honour its commitment as per the 2021 salary and wage collective agreement. 

Samwu general secretary Dumisane Magagula said the order was issued after the union wrote to the bargaining council to have the agreement enforced.

In addition, the council directed the city to increase the minimum wage to R9,531, the homeowners’ allowance to R1,011 and all linked benefits by 5.4%.

“We are pleased the SALGBC has acted and protected collective bargaining and stopped the attempts by the city to reverse the gains made by workers and for workers. We urge the city to comply with the order,” Magagula said. 

The union will monitor the implementation of the order, while continuing the fight for the implementation of the 2021 3.5% salary increase the city failed to implement, he added.

The city said on Friday it would file an exemption application to the bargaining council on the salary increases. 

“The city made it abundantly clear that it was unable to implement the salary and wage increases as it was unaffordable to do so and was in the process of filing an application for exemption to pay the increases. The exemption application will be filed by August 10 ,” the city said in a statement. 

Mayor Cilliers Brink said there was a need to improve the finances of the city.

“If we make sufficient strides in the collection of revenue and the workforce helps in the fight against corruption, we will reconsider our position on the nonpayment of salary and wage increases. This is not a shut door. Let’s work hard and stabilise our finances first,” Brink said. 

Failure by the municipality to pay the salary increases saw hundreds of Samwu members march to council building Tshwane House on Wednesday to demand their implementation. 

Earlier this week, the municipality said it had been open and transparent about its constrained financial position. In addition, the city owes Eskom about R1.9bn.

It said it was no secret Tshwane has financial and cash flow difficulties, including long-standing issues with debt collection and credit control.

In May 2023, the council approved a budget of R44.6bn for the 2023/24 year and made no provision for salary increments for employees or councillors. The employees’ wage bill is R12.6bn, while the councillors' salary bill is nearly R154m. 

On Friday, Brink met employees outside Tshwane House and reiterated the city's position that it would be unable to pay the increases. He said it will apply to the bargaining council to be exempted from doing so.

“We have a mandate from the city council to seek exemption from [paying] salary increases. It was not a decision that was taken lightly. It was not a decision to punish workers,” he said.

Brink added that provision of services in the municipality depended on workers, but it could not pay the increases.

“We struggle to pay Eskom, we struggle to pay rand Water. Even though we might not pay Eskom and rand Water on time, we do pay salaries on time every time and I do not want Tshwane to be one of those municipalities that cannot pay salaries, that cannot pay pensions.”

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