Pay Back the Money: Agreement Between City of Tshwane and Labour Unions to Address Approved Salary Increases Is Welcomed

GOOD Statement by Sarah Mabotsa, GOOD Councillor and MMC for Economic Development and Spatial Planning in Tshwane:

I welcome the agreement reached between the City of Tshwane and the labour unions representing city employees to repay the approved, but never paid, staff salary increases from many years ago.

Under DA-led administrations, including that of Cilliers Brink, the City failed to settle legally due debts to bulk suppliers such as Eskom and Rand Water, as well as outstanding payments to small businesses and city staff.

This culture of non-payment led to spiralling debts, with almost R7 billion due to Eskom and R1,5 billion to Rand Water. In the case of the City’s own employees, the approved, relatively minor 3.5% salary increase between 2021/22 was simply not paid out either.

Following a South African Local Government Bargaining Council (SALGBC) verdict that this approved increase should have been paid and must be paid, the unions and city leadership have met to develop a payment programme that will be affordable for the City and meet the commitments due to our staff. The payouts of the increases due to employees will thus be implemented in phases to mitigate any financial strain on the city and our residents.

The culture of non-payment that had been permitted to persist under the DA has resulted in billions of Rands of debt, which are legally due to various parties. Non-payment cripples bulk suppliers like Eskom and Rand Water, and demoralises employees who, as the breadwinners of their families, cannot keep up with inflationary costs of their homes, school fees, food and other household expenses.

I fully support this administration’s commitment to settling its outstanding debts. For the first time in years, we are operating under a fully funded budget with a surplus, enabling us to honour our legal obligations to our staff and bulk suppliers such as Eskom and Rand Water. Our repayment strategy justly prioritises lower-income employees, ensuring those who earn the least are the first to receive what is owed to them.

GOOD maintains that all municipalities must pay for the services they consume and ensure workers receive their legal entitlements.

 

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