THE cash strapped City of Tshwane has hit another brick wall when it comes to its finances.
This after the South African Local Government Bargaining Council dismissed their application to be exempted from implementing the last leg of a multiterm wage deal reached in the council in 2021.
On Monday, 11 September, the bargaining council dismissed the exemption application and directed Tshwane to comply with the wage deal with immediate effect.
The ruling comes as Tshwane employees, who are affiliated with the South African Municipal Workers Union (Samwu), have been on a strike for almost two months, demanding that the city implement a 5,4% wage increase.
In 2021, parties in the bargaining council concluded a three-year salary and wage collective agreement which would have seen municipal workers in the country’s 257 municipalities receive a 3,5%, 4,9% and 5,4% salary and wage increases in 2021, 2022 and 2023, respectively.
“Instead of implementing the first leg of the agreement in 2021, the City of Tshwane applied to be exempted from the agreement.
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Responding to the ruling, the Metro said it notes that the bargaining council has denied the application for exemption.
City of Tshwane spokesman Selby Bokaba said this is disappointing as the city has presented solid arguments supported by evidence as to why these increases are unaffordable.
“The city’s financial position is exceptionally fragile and, as such, we embarked on an extensive cost cutting exercise by reducing budgets by 30% across departments.
“It is worth noting that the panelist acknowledges the city’s liquidity challenges, but in the same vain, ordered the city to honour the collective agreement,” he said.
Bokaba said the city will immediately begin the requisite work to approach the Labour Court on an urgent basis to review this ruling.
Meanwhile, Samwu secretary general Dumisane Magagula said they note and welcome the decision by the bargaining council to dismiss the frivolous exemption application by the City of Tshwane to be exempted from paying workers their 5,4% salary increases effective from 1 July 2023.
“The city had taken a decision to deliberately deny workers as a way to undermine collective bargaining and dismantle workers’ unity within the city,” he said.
