Failed wage talks may lead to protests

COUNTRYWIDE protests may be on the cards, across municipalities, as the second round of salary increase negotiations between unions representing workers and the SA Local Government Association (Salga) ended with no signs of an agreement on the horizon.

Salga, which represents 257 municipalities, was expected to conclude the 2021 salary increment talks with municipal worker unions this week.

However, the talks seemingly reached a deadlock as the parties were unable to iron out their differences.

The increment was expected to become effective on July 1, which marks the new financial year for all municipalities.

The deadlock caused the adjournment of negotiations, which were postponed until next month.

Salga proposed a 2.8% across-theboard salary increase for 2021 which was 1.5% below inflation.

The association cited the Covid-19 pandemic as a reason for its low offer, and said the municipal sector was hardest hit by the pandemic.

While the unions, Independent Municipal Allied Workers Union (Imatu) and South African Municipal Workers Union (Samwu), demanded a 9% increase and R4 000 across the board increments respectively.

This week’s meeting between the parties was the second round of talks and still an impasse remains.

In its offer, the association said some municipalities were already unable to afford the current wage costs and would have to apply a 0% increase.

Salga revealed that 160 municipalities experienced some form of financial distress, which resulted in their material breaches of financial commitments. Sivuyile Mbambato, Salga’s spokesperson said the parties entered the latest round of negotiations acknowledging that they did so against the backdrop of an economic downturn.

“This had an impact on municipal finances as they were unable to collect and generate revenue due to the economic impact on businesses and households. Salga remains fairly optimistic in the progress made at the negotiation table and the parties have also affirmed their commitment to work towards common ground, which will result in an agreement being reached,” he said.

However, Samwu blamed fraud, corruption and maladministration for the shortage of funds saying their demands were reasonable.

Papikie Mohale, Samwu’s spokesperson, said their R4 000 salary increase demand was informed by the collective bargaining conference resolution to assist municipalities to save money.

“Salga creates the impression that as a result of municipal revenue collection declining, labour is intent on compromising the interests of workers.

“From the onset, Samwu has always maintained that workers cannot be blamed for fraud, corruption, maladministration and inefficiencies in municipalities, which included under and non-collection of revenue.

“We are further committed to this negotiation process but will not sell out workers or compromise their interests, ours is to ensure that municipal workers receive salary and wage increases to live decent lives,” he said.

Mohale said the union would embark on a nationwide consultation with its members now that the second round of negotiations has been concluded. He added that a decision will be made on what would be the next step should negotiations fail.

Keith Swanepoel, the president of Imatu, said their demands were informed by investigation and research and they were trying their best to find common ground with the employer.

Asked if they considered the impact of Covid-19, he said there was an “exemption clause” for those municipalities who were struggling to cope financially.

He said municipalities that couldn’t afford to pay increases could apply for an exemption from hiking salaries, using the clause.

“It is important to note that what happened in the second round of negotiations are merely opening manoeuvres and there is no talk of fixed positions yet.

“The parties are still a long way from finding common ground and significant hurdles remain.

“Negotiations are ongoing and we expect some intense bargaining to occur during the third round of negotiations,” he said.

The next round of wage negotiations is expected to take place on June 3 and 4 in Durban.