By BAKANG MOKOTO
The South African Local Government Association (SALGA), alongside organised labour, has concluded the third round of salary and wage negotiations, with the Facilitators’ Proposal now on the table. This proposal suggests a 6% wage increase, which all parties will now consider as part of the wage deal.
Following three intense rounds of salary and wage negotiations held on 15-19 July 2024, 23-26 July 2024, and 12-15 August 2024, at the South African Local Bargaining Council (SALGBC), the facilitators issued the Facilitators’ Proposal, dated 15 August 2024, proposes a salary and wage agreement for a five-year period.
SALGA spokesperson, Sivuyile Mbambato said the proposal aims to provide for salary and wage adjustments across the board in the context of the realities brought by high inflation, a constrained economy, and limited fiscal resources. Mbambato said should all the parties endorse the proposed salary and wage agreement, it will come into operation with effect from 1 July 2024, and shall remain in force until 30 June 2029.
“This will be the first ever salary and wage agreement spanning a five-year period ever obtained in the history of the bargaining council and will go a long way in ensuring the much-needed labour stability in the sector.
“SALGA, the employer body, representing 257 municipalities across the country, along with the South African Municipal Workers Union (SAMWU), and the Independent Municipal and Allied Trade Union (IMATU), now have a new task at hand which is to sell the Facilitators’ Proposal to their respective constituencies for a mandate and approval,” he said.
Mbambato further said the Facilitators’ Proposal on a salary and wage collective agreement, among others calls for salary increases. He added that they call for a 6% increase in 2024/25 financial year, with 4.5% effective from 1 July 2024 and an additional 1.5% from 1 March 2025.
“For 2025/2026, they call for an increase based on the 2025 CPI + 0.75%, effective from 1 July 2025. In 2026/2027, they call for an increase based on the 2026 CPI + 0.75%, effective from 1 July 2026. In the 2027/2028 financial year, they call for an increase based on the 2027 CPI + 1.25%, effective from 1 July 2027.
“In 2028/2029 financial year, they call for an increase based on the 2028 CPI + 1.25%, effective from 1 July 2028. On CPI adjustments, if CPI falls below 4%, it will be deemed 4%. If it exceeds 7%, it will be capped at 7%,” said Mbambato.
He said linked benefits and conditions of service, they call for a 4.5% increase from 1 July 2024, with an additional 1.5% from 1 March 2025. Mbambato said subsequent increases will align with salary increments as outlined above.
“Productivity and Service Delivery SALGA’s approach to these negotiations is also premised on the productivity levels of municipalities, linking salary increases to service delivery. On the issue of productivity, the Facilitators’ Proposal states that parties at the negotiation table “recognise that wage increase adjustments strive to reinforce, encourage and promote optimal municipal performance to ensure a higher level of productivity.
“Therefore, this salary and wage adjustments collective agreement must be seen to attract and retain scarce and critical skills to help municipalities maintain financial sustainability and viability,” he said.
Mbambato said economic context and exemptions given the challenging economic climate and shrinking municipal revenue, SALGA has been mandated to negotiate a feasible salary and wage agreement. He said part of this was to introduce a revamped exemption procedure to assist financially distressed municipalities to apply to be exempted from the wage deal.
“Way forward parties must submit their acceptance of the proposal in writing to the SALGBC by 2pm on 2 September 2024,” Mbambato.
The Guardian 