President Of Salga Parks Tau’s Remarks At The Municipal Wage Collective Agreement Joint Media Briefing, Bloemfontein

Posted: 23 August 2018

The South African Local Government Association (SALGA), as an employer body, acting on behalf of 257 municipalities countrywide, together with South African Municipal Workers Union (SAMWU) and IMATU Independent Municipal and Allied Trade Union (IMATU), have agreed on a muliti-year (3 year) Salary and Wage Collective Agreement for the period 1 July 2018 to 30 June 2021.  The agreement brings to an end protracted wage negotiations which lasted over six months when all parties agreed on a 7% salary increase for municipal workers with effect from 1 July 2018.

This agreement will create the foundation of labour peace and stability for the next 3 years and aid municipalities to achieve their medium-term budgeting objectives.  SALGA is delighted that in the end an agreement has been reached with the unions, over what is believed is the best wage deal for local government as a sector. As challenging as the negotiations were, all parties made mutual concessions in the interest of the sector. 

Among others, the agreement  provides for an additional 0.5% salary increment for employees earning below R9‚000; a 7% homeowner’s allowance; a non-pensionable allowance of R350 for employees earning less than R9‚000; and a maximum employer contribution towards medical aid that will increase by the same salary increment.

For the unions, this agreement will bring an end to the uncertainty which frustrated workers found themselves in when the previous agreement lapsed and they did not know what increment they would be getting.

Throughout the negotiations process, SALGA has been committed to the finalisation of this process in a manner that promotes the continued stability and sustainability of the sector.  All parties would like to affirm that the relationship between the employer body and unions is on solid ground despite many challenges confronting the sector.

This wage deal means peace and stability for local government and comes at a time when the prevailing economic environment requires all of all of us to put the interest of the sector ahead of our personal and individual interest.

SALGA continues to build on its strengths as an effective employer organisation and in the day-to-day provision of advisory services to municipalities.