Municipal wage increases?


SALGA, acting on behalf of 278 Municipalities countrywide has, during the opening round of negotiations, tabled its offer for salary and wage increases for municipal employees.

Despite the negotiations taking place during extremely challenging times, particularly for municipalities, SALGA remains hopeful of a fruitful and speedy outcome and is optimistic about the progress the negotiations have made so far and the positive spirit the Unions have displayed.

SALGA’s offer is for year 1 (2015/ 2016) 4. 4% (which is inflation linked). For years 2 and 3, it offered an inflation related increase plus an additional 0.25 %.  

SALGA has made this offer mindful of the impact which additional annual notch increases have on the salary budgets of municipalities. SALGA will attempt to address this matter during the current negotiations.

Together with the salary and wage increases there are other issues which will have to receive attention during these negotiations, such as; union demand for increase in the minimum wage, in the medical aid contribution rate, and homeowner and rental allowances.

SALGA has indicated upfront that these demands will add an unnecessary burden on the budgets of municipalities and will impact negatively on service delivery obligations of municipalities.

In the offer SALGA took into account a number of factors which include; the critical constitutional mandate of municipalities to deliver services, the recent budget policy pronouncements by the Minister of Finance around the need to contain wage increases, changing the collective bargaining landscape.

SALGA also took into account, the recent Labour law amendments, benefits of interest based bargaining coupled with a holistic/ mutual gains approach to negotiations, benefits of a multi-year agreement as opposed to a single year agreement, affordable and sustainable increases given the degenerating financial state of municipalities, the country’s macro-economic policy and the need to match salary increases to improvements of levels of service delivery.



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This edition

Issue 68