2009-07-28: Media briefing on the municipal wage settlement
IN an attempt to find a negotiated settlement to the wage dispute between the employer body, the South African Local Government Association (SALGA) and trade unions (SAMWU and IMATU), met on an urgent basis on Friday 25th July 2009.
The parties jointly worked on a proposal, which they committed to take to their respective constituencies.
In a nutshell the proposal entails the following:
11,5 % effective from 01st July 2009 and an addition 1,5% in January 2010, which will result in 13% increase. For the financial year 2011 and 2012 with effect from 1st July an across the board increase based on the average CPI percentage for the period 01st February 2010 until 31st January 2011 plus 2%.
Minimum wage which will be Three Thousand and Eight Hundred and Fifty (R3 850.00) per month from 1st July 2009 and will become Four Thousand Rands (R4000) in January 2010.
Home owners allowance shall be as follows:
Hundred Thousand Rands (R100 000.00) 2009\10, Hundred and Ten Thousand Rands (R110 000), 2010\11.For the 2011/2012 financial year, the Home Owners Allowance will be based on a maximum bond of One Hundred and Thirty Five Thousand Rands (R135 000).
Our response has taken into consideration that municipalities are facing complex challenges and operating within the climate of a global economic recession. Given the positive spirit in which the parties left the negotiations on Saturday morning, we hope that when parties return to the negotiation table by Thursday 30th July 2009, an amicable lasting solution would have been found.
SALGA believes that negotiations are the most preferred vehicle to nurture industrial relations since this is a critical prerequisite for quality
service delivery and development. It is worth noting that the current wage negotiations commenced about three months ago as a sequel to the local government sector’s multi-year agreement ending at the end of June 2009. This multi-year agreement lasted for three years – from 2006 till 2009. At the commencement of the latest wage negotiations, the parties started off far apart with SALGA offering 7.2% and unions (SAMWU and IMATU) demanding 26%.
The parties then agreed to appoint a Facilitator in order to find common ground that might lead to a settlement. The Facilitator made a proposal of 10,5% for the first year, average CPI plus 1,2 for second and average CPI plus one the third year for the parties to consider in an attempt to broker an agreement.
The parties to the negotiations have agreed to take the proposals to their constituencies for further consultations and to reconvene on Thursday, 30th July 2009.
SALGA would like to express its appreciation not only to its Bargaining Council representatives but also to the Unions’ – SAMWU and IMATU representatives and other stakeholders for the work done thus far. We are encouraged by the progress made and we are hopeful that the current proposal will be accepted.
We have moved with speed on this matter because of our concerns that the strike will have a negative impact on service delivery, in addition to the ongoing community unrest that has been experience in some municipalities in our country SALGA’s position is clear. We trust that the union leadership will deliver. We appreciate that yesterday at least 60% of our essential service workers turned up for work and we regret that 40% did not. We however, urge everybody to turn up for work without delay.
Our view is that those who render essential services should do nothing to compromise the lives, property and the safety of residents and citizens. SALGA is disturbed and greatly concerned about the reported incidents of violence, intimidation, trashing and other actions that suggest anarchy and criminality. We condemn this behaviour. We are calling for calm and we ask everyone to provide leadership and the necessary guidance.
Issued: SALGA National Executive Committee
