A legal showdown between the City of Tshwane and labour unions in the metro over an unfulfilled 2021 collective wage agreement is finally scheduled to take centre stage at the Labour Court on November 28.
This comes after almost two years since the City had approached the court with a view to adjudicate on its review application concerning a decision to be exempted from paying workers a salary increase in line with a signed wage agreement.
Both the City and labour unions, the South African Municipal Workers Union (Samwu) and the Independent Municipal and Allied Trade Union, entered into a three-year collective salary and wage agreement in 2021.
Part of the agreement would have seen municipal workers’ salaries increasing by 3.5% in the 2021/22 financial year, 4.9% in 2022/23, and 5.4% in 2023/24.
However, the City reneged on the agreement by making an exemption application to the SA Local Government Bargaining Council on April 8, 2022, to excuse itself from the deal.
The City’s application was dismissed, but the ruling was subsequently overturned in an August 24, 2022, arbitration ruling.
The arbitration ruling effectively gave the green light to the City’s move for a review application challenging the Labour Court’s April 8 verdict.
It was found that the City’s exemption application was dismissed “without hearing the reasons for exemption, and in particular did not decide the affordability of the increases”.
The City cited in its application that should it not succeed in its application for exemption from the agreement it would be forced to spend R489 million in increases, in breach of the statutory prohibition of the Municipal Finance Management Act.
This week, Samwu general secretary Dumisane Magagula said: “Instead of honouring this agreement, the City of Tshwane has repeatedly sought to evade its responsibilities by applying for exemptions, first for the 2021/22 increases and again for the 2023/24 increases. This blatant disregard for the agreement has resulted in denying our hard-working members their rightful salary increases twice within a three-year period.”
He was confident the judicial process would enforce compliance and deliver justice for labour union members struggling to keep up with the rising cost of living.
“While this case specifically addresses the 5.4% increase, Samwu remains fully devoted to securing the 3.5% increase owed to our members from the 2021/22 financial year. We understand the immense frustration and hardship caused by the City’s actions and are dedicated to tirelessly fighting for justice on behalf of our members,” Magagula said.
Pretoria News