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IOL Business reports that the City of Cape Town is digging its heels in over the above-average salary increases that have been proposed for municipal workers.
A facilitator’s report to the SA Local Government Bargaining Council (SALGBC) recommends that municipal wages be increased by around 5% in 2024/25. It further proposes that wage increases should be pegged at 0.75% above the Consumer Price Index (CPI) for the following two years and at 1.25% above CPI for the two subsequent financial years. However, this would come at a cost that the City says it cannot afford. According to its calculations, the proposed above-average increases for the four-year period – from 2025/26 to 2028/29 – would lead to a budget shortfall of R2.06 billion. “The shortfall is not sustainable for the City, which has today rejected the facilitator’s proposal, recommending to SALGA (SA Local Government Association) that the proposal for years two to five must rather be linked to CPI with no additional percentage increases,” the City advised in a statement. It said SALGA was consolidating feedback from its provincial structures before formulating a national position on the wage proposals contained in the facilitator’s report.
- Read the full original of the report in the above regard by Jason Woosey at IOL Business
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