The Polokwane Municipality has opted to implement wage and salary negotiations as determined in the three-year salary and wages determination from 1 July 2018 to 1 July 2021 at the South African Local Government Bargaining Council three years ago, during a special council meeting last Friday.
This despite the South African Local Government Association’s (Salga) submission to municipalities that, to implement the increases, would be out of touch and inconsistent with current realities given the financial, economical and job losses reality.
The association said a 6,25% increase is well above the inflation rate and berated local and government leaders turning a blind eye on current realities.
National Treasury also has several times approached Salga in urgent letters, the last on 24 July, following the adapted Covid-19 budget, that municipalities must not implement the increases due to reduction in revenue of 30% in metros’revenue and 40% to 60% in other municipalities’ income since March.
Treasury observed growth in terms of municipal debtors, outstanding debtors and poor audit outcomes, with some municipalities not being able to meet their salary obligations earlier this year already.
Following labour unrest last month, and municipal workers’ unions Imatu and Samwu refusing to budge at a revised salary plan, the municipality has kept to their original budget, and said that the increases were incorporated in its budget for 2020/21.
Salga offered a freeze in salaries and wages, with a 3,25 % increase from 1 July as well as a 3% increase as from January 2021, to be implemented s from January plus other perks, but this was declined.
The municipality said it would be able to implement the increases by filling only revenue generating posts due to retirement and resignation, delay some projects, and the scopes of other, savings on fleet management will be channeled to service delivery and contracted services will be reconsidered, among other plans that are envisioned.
SBUs will also be held to a specific allocated cash budget per month and the illegal connections will be managed increasingly.
The increases in salaries are to add an additional R2 million to municipal expenditure per month.
Salga warned about further loss of income due to businesses closing down, salaries decreased and job losses.
Story: Nelie Erasmus
