Moneyweb reports that the City of Tshwane has been dealt a huge financial blow after the SA Local Government Bargaining Council dismissed its application to be exempt from paying staff a 3.5% salary increase in 2021/22.

The City was ordered to pay the salary increase, which would have cost the council R489 million in that year, retrospectively within six months. This is expected to now amount to at least R2 billion. In addition, the increase will be reflected in an increase in payroll in coming years. The municipality may, however, attempt to appeal the latest ruling, which would temporarily suspend its implementation. The dispute over the salary increase has a long history (as detailed in the news article). In April 2022, the bargaining council ruled on a technical point in favour of the workers regarding the 2021/22 increase, but the municipality appealed to the Labour Court, which set aside the ruling and referred the matter back for reconsideration by the bargaining council. This is the ruling that has now been delivered.

The SA Municipal Workers’ Union commented that, while for years the City played endless legal games, workers in Tshwane and their families have been subjected to severe and unjust economic hardship. Lynette Burns-Coetzee of the Independent Municipal and Allied Trade Union said the non-payment of increases since 2021 had placed “tremendous of physical, mental and emotional stress on our members”. DA Tshwane spokesperson on finance Jacqui Uys called the ruling legally flawed and financially ruinous. Uys believes there are strong grounds to take the matter on review in the Labour Court.

• Read the full original of the report in the above regard by Antoinette Slabbert at Moneyweb
• Lees ook, Salarisbesluit ’n finansiële ramp vir Tshwane, sê DA, by Maroela Media

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