Cost of local govt jobs

Personnel costs of some account for about 40% of their operating expenses.

- Antoinette Slabbert

Wage negotiations at local governrement level sumed yesterday, with the parties still being far apart. The previous wage agreement lapsed at the end of June and it is not yet clear whether the new agreement will be for the current year only or for multiple years.

The South African Municipal Workers Union (Samwu) and the Independent Municipal and Allied Trade Union (Imatu) are insisting on an increase of 8% and some improvement in benefits, while the local government association Salga which represents municipal employers countrywide is only prepared to give employees covered by the bargaining agreement 3.5% more.

Salga further wants most of the municipalities excluded from the agreement, saying it simply cannot afford to pay workers more.

It says the current exemption procedure is not working as parties in the South African Local Government Bargaining Council as a rule oppose them.

Affordability issues

According to Salga, the 66 municipalities considered by National Treasury to be "severely financially distressed" and the 157 that are considered "financially distressed" have severe affordability issues and the parties should acknowledge this.