As the city of Johannesburg embarks on the 2025/26 adjustment budget, a contentious R10.3 billion wage agreement with the South African Municipal Workers’ Union (SAMWU) has ignited a political firestorm, raising serious questions about the legality and sustainability of the municipal finances.
At the centre of the dispute is the Politically Facilitated Agreement (PFA), which SAMWU says is a long-overdue intervention to correct wage disparities, while the Democratic Alliance (DA) warns it could push the metro deeper into financial instability.
SAMWU has welcomed the passing of the adjustment budget, describing it as a significant victory for workers who have endured years of inequality. The union said the gains were not easily achieved but secured through sustained organisation, resilience and determination.
The union said the agreement is aimed at addressing deep-rooted salary imbalances within the City of Johannesburg and restoring fairness among workers.
“Opposition to the adjustment budget therefore has implications that go beyond labour matters and touches on the municipality’s ability to respond to service delivery challenges facing communities.”
SAMWU also stressed that the adjustment budget extends beyond the wage deal, covering broader service delivery priorities, operational needs, and financial realignments within the municipality.
The union noted that the budget was supported by parties including the ANC and the EFF, while accusing those who opposed it of undermining efforts to improve workers’ conditions and service delivery.
But the DA has drawn a hard line, rejecting the deal as financially reckless and legally questionable.
DA Johannesburg Shadow MMC for Finance Chris Santana warned that the city is being pushed towards a fiscal crisis, arguing that the adjustment budget fails to meet basic legal and financial requirements.
“The Democratic Alliance (DA) in Johannesburg rejects the 2025/26 Operating Adjustment Budget tabled before Council today. This budget risks pushing the City further into financial instability and undermining already fragile service delivery.”
Santana said the budget falls short of the standards set out in the Municipal Finance Management Act (MFMA), raising concerns about transparency and long-term sustainability.
“We are deeply concerned that this budget fails to meet the most basic legal and financial standards required under the Municipal Finance Management Act (MFMA). This adjustment budget is a politically driven document that ignores the law, avoids transparency, and places the financial future of Johannesburg at risk,” he said.
He said the inclusion of the multibillion-rand wage agreement remains a key concern, with no clear indication of how it will be funded or what trade-offs will be made.
“At the centre of our concern is the inclusion of a so-called R10 billion ‘Political Facilitated Agreement’ with SAMWU. There is no clarity on how it will be funded or which existing services will be reduced or cut to accommodate it,” he added.
Santana warned that council cannot approve major spending commitments without lawful funding mechanisms, describing the move as reckless.
“An adjustment budget is not a blank cheque. Council cannot be asked to approve new spending commitments without clear trade-offs, detailed costing, or a lawful funding source. That is reckless and potentially unlawful.”
He added that residents are already experiencing the consequences of poor governance, pointing to failing infrastructure and declining service delivery.
“Johannesburg residents are already paying the price for poor governance through failing roads, water outages, power interruptions, and collapsing service delivery. This budget does nothing to fix that. It makes it worse,” Santana said.
The Star
