/ 7 July 2006

Unions agree to a three-year municipal salary deal

Two municipal trade unions indicated this week that they have accepted a three-year wage deal put forward by the South African Local Government Bargaining Council (SALGC).

The South African Municipal Workers’ Union (Samwu) announced on Friday that it would accept the deal, while the Independent Municipal and Allied Trade Union (Imatu) accepted it earlier this week.

”We have resolved to accept the offer,” Samwu’s chief negotiator Dale Forbes said. ”We were not in a position to strike this year after last year’s three-week strike.

”We are still feeling the effects of that.”

Originally both unions demanded a one-year deal that would see wages rise 15% and the minimum wage set at R3 500.

Under the accepted deal, employees will be getting a 6% increase from July and a further 2% in January next year.

The minimum wage will increase to R2 850 and in January to R2 907.

In July next year municipal workers will receive an increase of 1,75% above CPIX and in the third year, 2008, 1,5% above CPIX.

The minimum wage for the second and third years will also be increased by the same margins.

”It has some positive features. They have considerably raised the minimum wage and for the next three years salaries will stay above the CPIX,” he said.

Forbes said the deal is likely to be signed in two weeks’ time.

Imatu general secretary Clive Dunstan said on Thursday: ”We got a mandate from our members. We looked at it [the deal] very carefully. I think it’s very good to get it [the three-year deal] above the CPIX.”

Individual municipalities will have the option of applying for an exemption from the collective wage increase; however, they will have to provide documentary evidence to the SALGC’s central exemptions committee.

Both Dunstan and Forbes said they did not expect too many municipalities to apply.

”We will handle it on an individual basis. Very often we tell them ‘Why don’t you start recovering debts?’,” Dunstan said.

Late last month Auditor General Shauket Fakie told the SA Local Government Association (Salga) national assembly in Durban that municipalities have outstanding debts of R19,2-billion. He said the municipalities expected to recover on average less than 50% of that.

Salga confirmed that it had already received Imatu’s response, and it is expected to receive Samwu’s written response within the next few days. — Sapa