/ 11 August 2011

Union demands will cripple SA cities, say municipalities

The 18% pay rise demand of municipal workers is not affordable for municipalites, the South African Local Government Association (Salga) said on Thursday.

If their demand was met, funding would have to be sourced from existing revenue, for example increasing rates and taxes, spokesperson Milisa Kentane said.

She said this would have a ripple effect on the economy and expose workers to increases in goods and services, negating their salary increase.

Alternatively, basic municipal services would have to be scaled down, leading to possible job losses and increased protests against poor service delivery.

The SA Municipal Workers’ Union (Samwu), however, said this was “mere propaganda” and that most municipalities could afford an increase of at least 10% — the least workers would accept.

“We have in our possession the financial records of all municipalities. Most of them do not even finish or use up their budgetary allocations and there is also a lot of wastage,” spokesperson Tahir Sema said.

“We are saying that the outright majority, between 80% and 90% of municipalities, can afford this, except for rural municipalities and those plagued by corruption in Limpopo and the North West.”

About 145 000 members of Samwu and the Independent Municipal and Allied Trade Union (Imatu) were expected to start striking countrywide for higher pay on Monday.

The strike would extend to the essential services sector, and possibly the water sector, affecting 262 municipalities across the country.

Unions rejected a 6% increase as part of a three-year wage agreement established in July 2009.

Kentane said a 7.5% increase was suggested during the conciliation process but this was rejected by municipalities.

“This increase would cost the City of Cape Town an additional R96-million per annum, and the City of Johannesburg an additional R97.5-million per annum.”

“Meeting the 18% demand [for example] would cost Johannesburg an additional R829-million per annum.”

Sema said the 18% was an initial figure tabled during the first round of negotiations.

“If Salga had come to the negotiating table, this figure would have been reduced … all we are asking is for them to stop dragging their feet.”

If Salga tackled the issue of corruption by municipal leaders, “millions of rands” would be liberated, Sema said.

Said Kentane: “Even at this last hour Salga hopes that an amicable solution will be found.”

She said all municipalities had contingency plans in place. — Sapa