Today's Labour News

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SalgaBL Premium reports that parties to the local government wage negotiations have agreed to a 3.5% wage hike deal and a once off non-pensionable cash allowance for SA’s nearly 300,000 municipal workers.

They had been negotiating a new wage increase agreement since March. In a statement on Wednesday, the SA Local Government Association (Salga), the employer body that represents 257 municipalities, said employees earning a basic salary of R12,500 or less as at 1 July will receive a non-pensionable cash allowance of R4,000, while those earning more will get R3,000. “The salary and wage negotiations have now concluded and an agreement covering three financial years from 2021-2024 was voted unanimously,” said Salga. The association said inflation-linked increases “in the outer years of this agreement will be based on the inflation outlook and projections made by the SA Reserve Bank”. In its July forecast, the Bank saw headline inflation averaging 4.3% in 2021, 4.2% in 2022 and 4.5% in 2023. The SA Municipal Workers’ Union (Samwu), which represents about 160,000 of the 290,000 workers in the municipal sector, had been demanding a R4,000 increase, while the Independent Municipal and Allied Trade Union (Imatu) had been demanding 9% or R2,500

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

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