Tshwane chooses dialogue over appeal in salary increase ruling

The City of Tshwane has opted not to appeal the SA Local Government Bargaining Council's ruling that it must pay municipal workers a 3.5% salary increase backdated to 2021. 

Instead, it will engage in talks with labour unions to explore practical and sustainable implementation options.

According to Member of the Mayoral Committee for Finance Eugene Modise, the city acknowledges the recent verdict handed down by the bargaining council regarding its application for exemption from the implementation of the 2021/22 salary and wage collective agreement.

The bargaining council ruling, which described the financial impact of the 3.5% backdated pay increase as “very huge”, gave the city six months to implement it.

Modise said: “After due consideration of the ruling and the factors presented, the city will not pursue an appeal or review of the bargaining council’s decision. We respect the outcome of the process and remain committed to upholding the principles of collective bargaining, good governance, and labour stability.” 

He said the city will engage constructively with organised labour unions to explore practical, convenient, and sustainable modalities for implementing the award.

“These engagements will seek to ensure that the implementation process is both compliant and considerate of the city’s financial realities, while prioritising fairness and ensuring that service delivery will not be compromised,” he said.

The city’s decision not to appeal goes against the DA’s call to take the ruling on judicial review at the Labour Court, warning that failure to do so could undermine its financial recovery efforts.

The DA's chief whip in Tshwane, Jacqui Uys, criticised the ruling for being “legally flawed and financially ruinous”.

She said: “But the reasons provided for the award lack the most elementary assessment of whether the city is actually able to afford a R1,4 billion expenditure in the next six months. In fact, the entire decision seems to have been taken without regard to the city's current financial position.”

The South African Municipal Workers' Union (Samwu) slammed Uys’ comments, accusing her of undermining the bargaining council's ruling and attempting to pressure the city into disobeying the law.

“The DA’s statement, which falsely labels this binding award as ‘flawed and ruinous’,  is a declaration of open war against the working class and a direct, contemptuous assault on the collective bargaining institutions of our democracy,” said Samwu National General-Secretary Dumisane Magagula.

The Independent Municipal and Allied Trade Union has, on the other hand, hailed the ruling as a victory for union members, who have been denied two separate increases for the past four years.

rapula.moatshe@inl.co.za