By Antoinette Slabbert.
The City of Tshwane has reached an agreement with municipal unions Samwu and Imatu to implement, on 1 March this year, the 3.5% salary increase their members have been entitled to since 2021.
The backpay would have cost the cash-strapped city R1.5 billion, but has been reduced through negotiations to R1.088 billion. It will be paid to staff in batches, with the final batch being paid in February 2029.
The backpay is in addition to an annual increase of 0.75% above the inflation rate for this year and next year in terms of a five-year wage agreement reached at national bargaining council level for all municipalities.
The agreement concludes the salary dispute that originated when the employer, led by then mayor Cilliers Brink of the DA, applied for exemption from the 2021 wage increase, pleading financial hardship.
At the time, the metro was paying off a huge tax liability to the tune of about R90 million per month and its Eskom bill was in arrears.
Brink’s administration also applied for exemption from the 5.4% wage increase agreed upon for 2023/24, and this was granted in the Labour Court last year.
The 2021 matter was however remitted to the bargaining council, which ruled in October last year that it must be paid.
Settling things a ‘top priority’ for the current administration
Tshwane Mayor Nasiphi Moya emphasised at a media briefing on Thursday (19 February) that settling this dispute was a top priority for her administration from the day it assumed the city government following a motion of no confidence in Brink in September 2024.
Moya said a city needs a motivated workforce to implement its plans and campaigns. To ensure this, the mayoral committee decided at that stage that it wouldn’t litigate or apply for exemptions from wage agreements.
When the bargaining council’s ruling came in October last year, the administration therefore accepted the liability and entered into negotiations with the unions, which led to this settlement.
The total backpay was reduced after the unions agreed that the 3.5% increase would only be applied to workers’ basic salaries.
Payments timeline
It was further agreed that staff in the lower levels would be paid first.
The city uses the Tuned Assessment of Skills and Knowledge (TASK) grading system to grade non-executive jobs.
The schedule is as follows:
- 2026 – TASK levels 1 to 6, covering 8 139 employees, will be paid in June, August and October;
- 2027 – TASK levels 7 to 10, covering 8 224 employees, will be paid in February, May and December;
- 2028 – TASK levels 11 to 18, covering 4 601 employees, will be paid in April, August and November; and
- 2029 – TASK levels 19 to 22, covering 125 employees, will be paid in February.
Employees who leave the City of Tshwane either through retirement or resignation will be paid their outstanding backpay on exit.
City budget
Moya gave the assurance that the settlement has been provided for in the city’s adjustment budget, which is currently before council.
“To be clear, the budget remains fully funded, with an operating surplus of R1 208 052,105,” she said.
Moya said the first phase of implementation will be covered as departments have identified targeted reductions in non-strategic and discretionary expenditure.
“At the same time, allocations to key service delivery areas have increased,” she added.
“Energy and Electricity has received an additional R109 million to strengthen the 11kV cable network, upgrade substations, replace obsolete equipment, and support distribution stability.
“Water and Sanitation has received an additional R147 million to replace worn-out pipes, rehabilitate sewer networks, upgrade pump stations, and strengthen water conservation measures.
“A further R15 million has been allocated to enhance internal emergency water supply capacity.
“These are investments in reliability and resilience,” she emphasised. “No frontline services have been defunded. No core infrastructure programme has been withdrawn.”
Reinstatement of dismissed workers?
Negotiations are ongoing to reinstate the 43 workers who were dismissed when Tshwane staff embarked on a violent three-month unprotected strike in 2023 about the decision to withhold the increases.
Samwu Tshwane regional chair Lehlohonolo Maphatsoe says the process to reinstate them is taking too long and blames Brink, who he says “left the families in poverty”.
EFF member of the mayoral committee Obakeng Ramabodu however says the reinstatement of the workers will depend on the evidence in each case.
He notes that Tshwane’s workforce has been stabilised under the current administration and adds: “Any institution that does not take care of its workers will not be successful.”
‘Ratepayers will pay’ – Brink
Following the settlement announcement, Brink pointed out that ratepayers will be forced to foot the bill while service delivery continues to deteriorate.
“This matter could have been taken on review to the Labour Court – as the DA did in a similar 2023 matter. We put residents first and won that case, ensuring that billions went towards service delivery.
But the ANC-led coalition squandered this precedent … they made unaffordable promises to union bosses at residents’ expense.”
Brink rubbished Moya’s claim that the settlement won’t impact service delivery, saying Tshwane is already stretched to breaking point with a 42% vacancy rate in the electricity department and a 47% vacancy rate in water and sanitation department.
“This money could have been used to grow the workforce to keep the lights on and water flowing,” said Brink. They’ve chosen a deal that will cripple service delivery in Tshwane.