Day 2 of wage negotiations for Local Gov sector - no major progress

The second day of the first round did not produce any major progress in wage talks for the 230 00 Local Government workers. Much time was spent attempting to get the employers' association, SALGA, to withdraw demands to cancel the Main Agreement and the Disciplinary Code. Attempts by SAMWU and IMATU to do this were unsuccessful as SALGA maintained its view that these agreements had to be terminated.

The further attempts to short circuit existing disputes on a retirement fund for the sector, medical aid scheme arrangements and a housing allowance by SALGA also had to be addressed. No progress on these matters was possible.

After an exchange of views about the state of Local Government finance and the needs of municipal workers, both trade Unions and SALGA agreed to modify their proposals for the 2012/13 financial year. The unions moved to 13% or R2000, whichever is greater and a minimum wage of R6000. SALGA made a marginal improvement of 0.5% to 4.5% whilst offering no cash adjustment and wanted the existing minimum wage in the sector to remain as is.

SAMWU was exceedingly disappointed by the tiny movement made by SALGA. Their offer is still below inflation. The attempt to make municipal workers take a real pay cut this year is completely unacceptable. This is not a good sign that SALGA is serious about resolving these negotiations peacefully. The commitment of SAMWU is still to try to resolve the negotiations with as little as possible disruption to municipal services. To this end, the leadership of SAMWU will be consulting its members ahead of the next round of negotiations in Durban next week. Members will have to consider whether the positions tabled by SALGA are sincerely attempting to provide the best grounds for labour relations in the sector.

Statement issued by SAMWU General Secretary, Mthandeki Nhlapo, May 22 2012

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