/ 16 June 2003

Municipal union threatens mass action

Municipal trade union, Imatu, threatened on Monday to embark on a mass action and accused the SA Local Government Association (Salga), the body representing municipal employers, of unilaterally and unlawfully reducing workers’ pension benefits and salary increases.

The Independent Municipal and Allied Trade Union which claims to represent 70 000 workers said in a statement that Salga had recently announced that pay increases of 11% that were agreed to at the SA Local Bargaining Council (SALGBC) be reduced to 10,5%. The agreement was reached at SALGBC by Salga, Imatu

and the SA Municipal Workers Union.

”Salga also decided, without consulting with the unions, that they would unilaterally reduce the pension benefits for thousands of employees,” Imatu said.

”This decision will have catastrophic consequences for many employees who are near retirement age, as the employer is no longer prepared to subsidise defined benefit funds, in spite of long standing agreements.”

It further accused Salga of having gone back on their original offer to allow employees to sell back their excess leave.

”In terms of their unilateral decision, employees will only be able to do so with the approval of municipal managers,” the union said.

It said Salga, Imatu and Samwu were bound by the procedures agreed to at SALGBC. Imatu would take legal action to ensure the employer did not defy the democratically-agreed labour laws of the country. – Sapa