Today's Labour News

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SalgaBL Premium reports that in what could signal tough wage talks ahead, the SA Local Government Association (Salga), which represents the country's 257 municipalities, has proposed a three-year wage deal with a 2.8% wage increase for 2021/2022.

In a strongly worded letter to the SA Local Government Bargaining Council (Salgbc), Salga CEO Xolile George called on municipalities to hike salaries in line with available resources, saying failure to do so would constitute financial misconduct. He also called on the parties to adopt an interest-based bargaining approach for the wage talks, a total freeze of increases on all benefits linked to wage hikes, and for the multi-term agreement to provide for a mechanism for each party to “opt out” on account of extraordinary, unforeseen circumstances. Among other things, the wage agreement also needed to incorporate an “exemption dispensation” for non-affording, least-affording or just-affording municipalities, as independently assessed by a panel of financial experts. George said some municipalities struggling with the current wage costs would have to apply “no more than a 0% increase” in the 2021/2022 medium-term revenue and expenditure framework. Meantime, the SA Municipal Workers’ Union (Samwu) is demanding a one-year wage agreement of a R4,000 salary increase across the board, a R15,000 minimum wage, a R3,500 housing allowance, 80% employer medical aid contribution, 25% employer contribution towards pensions, and six months’ paid maternity leave and paid paternity leave of one month.

  • Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (paywall access only)


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