A collective agreement has finally been reached in the local government sector.
The SA Local Government Association (Salga) announced on Wednesday that it had reached an agreement with a 3.5% pay increase for the first year of a three-year agreement Salga, the employers’ association that represents 257 municipalities, has been in lengthy wage negotiations with the SA Municipal Workers Union (Samwu) and the Independent Municipal and Allied Trade Union (Imatu) since March.
Samwu had requested a one-year wage increase of R4,000 per month, a housing contract of R3,500, an employer contribution of 80% towards medical care, six months of paid maternity leave and one month of paid paternity leave. For its part, Salga had offered a 2.8% pay increase.
In a statement on Wednesday, Salga said that wage and collective bargaining had now been concluded and a collective agreement was unanimously agreed.
Salga said with a view to the current financial year, all municipal employees will receive an increase of 3.5% with effect from July 1st, during which the remuneration of municipal employees will be adjusted annually.
In addition, the employees will receive an one-time non-pensionable cash allowance of R4,000 for those earning a base salary of R12,500 or less and R3,000 for those earning a base salary of R12,501 or more on July 1st.
< p> For the second and third year of the collective agreement the increase will be based on the average consumer price index forecast by the Reserve Bank ieller Not a lifeline until 2023.
“It also means that should greater difficulties arise, municipalities have the opportunity to review the terms of the agreement,” Salga said in a statement.
Salga also said the agreement imposed a zero increase on some benefits such as home ownership allowances and medical assistance.
The employers’ board said, “reachi.” The deal was not an easy task as the negotiators got stuck in the collective agreement several times, resulting in the need to call in an arbitrator after a mediator’s proposal in August also failed to close negotiations.
Salga said the collective agreement means the industry will remain stable as no annual collective bargaining is required.
“The three-year collective agreement will allow municipalities to budget accurately in the medium-term budgeting process.”
Imatu said the collective agreement was signed by the unions. “However, the signature of the Salga CEO is still pending. The agreement will be circulated as soon as it is signed, “Imatu said in a statement.
Samwu said it would comment on it later.