/ 27 June 2004

Municipal workers union mulls strike

The South African Municipal Workers’ Union (Samwu) said that it may pursue industrial action should its dispute with the South African Local Government Association (Salga) not be resolved.

Samwu concluded its National Executive Committee (NEC) meeting on Saturday. In a statement, Samwu spokesman Dale Forbes said that Salga had given notice to Samwu that it intended to terminate the Organisational Rights Agreement by December 31 this year should Samwu not accept its demands to downgrade the terms of the agreement.

”The agreement which was concluded in 2000 provided for matters such as time off for shop stewards to attend training, stop-order deductions for union subscriptions, the creation of bargaining structures at municipal level and the right to elect full-time shop stewards where membership reached a certain level,” Forbes said.

He said Salga wanted to prevent supervisors from becoming shop stewards, withdraw the right of the unions to have funeral benefit schemes deducted from the wages of members and reduce local bargaining structures to consultative forums.

Forbes said this undisguised attack on Samwu, a partner in the Tripartite Alliance with the ANC, was completely unacceptable.

”Samwu will not stay quiet while Salga proceeds with its attempt at union bashing.

”Should Salga not withdraw its threat, Samwu will be declaring a dispute and will pursue industrial action to halt Salga’s actions,” Forbes said.

Meanwhile, he said Samwu have been negotiating with Salga to establish a new pension regime for local government that would transform the R60 billion industry.

He said a draft agreement was recently submitted to Salga.

”The agreement states, amongst other things, that all new employees should join defined contribution funds, employees are entitled to remain with defined pension funds regardless of their age, a special allowance will be paid to those employees who are within 10 years of retirement who opt to move from a defined benefit fund to a defined contribution fund and a contribution rate of 18% will be applicable to all employees with effect from 1 January 2006.”

Forbes said Salga had subsequently invited all pension funds operating in the sector to a meeting where it proposed the creation of a single fund that would be controlled by Salga.

”This act of bad faith will not go unheeded by Samwu,” he said. ‒ Sapa