The South African Municipal Workers’ Union (Samwu) on Thursday warned of a possible national strike by its 200 000 members should they reject a proposed 6% wage increase.
The South African Local Government Association (Salga) is also considering the proposal, made by the facilitator in the wage negotiations that started in March.
Under the proposal, a further increase of 2% would be effective from January 2007, when the minimum wage would increase from R2 850 to R2 907.
There would be another increase of CPIX plus 1,75% on July 1 2007 and an increase of CPIX plus 1,5% on July 1 2008.
Samwu deputy general secretary Andile Sihlahla said the union opened negotiations demanding a 15% increase of R500 across the board.
Salga offered 3,97%, which it upped to 5% in the next round of negotiations, when Samwu lowered its demand to 12%.
The union is now asking for 10% or R425 across the board, while Salga is offering a three-year-deal, including a 6% increase this year and increases of CPIX plus 1,5% in the next two years.
Samwu members have until July 7 to respond to the proposal.
”Every worker is struggling to make ends meet. Our members are heavily indebted to ensure there is bread on the table,” said Samwu negotiator Dale Forbes.
”Job grading has not happened despite an agreement to implement new grades by January 2005.
”We believe that the proposal will go some way in addressing these problems,” he said.
He emphasised that, should a strike proceed, a minimum service-level agreement will ensure essential services are carried out and the community is not affected.
Sihlahla said the outcome of the wage negotiations is not dependent on the resolution of a dispute over the pension fund.
Samwu has accused Salga of undermining an agreement not to introduce a new pension fund in the sector and not to force members to move from one fund to another.
This, after Salga issued a circular to local government councils and retirement funds compelling them to transfer members to a newly created Local Government Pension Fund.
Samwu and the Independent Municipal and Allied Trade Union have issued Salga with an ultimatum to withdraw its instruction or face legal and industrial action.
”The reality is that there is a dispute on the overall framework for retirement-fund arrangements, which will determine the employer contribution rate, [and] compensation for moving members from defined benefits to defined contribution funds in the sector,” said Sihlahla
He dismissed Salga’s accusations that those who opposed the new fund had benefited from previously discriminatory pension fund laws or did not care about local government service delivery.
The real reason lower-paid workers were not joining pension funds was because of the ”starvation wages” Salga offered and not because they were being purposefully excluded, he said. — Sapa