Tshwane mayor refutes DA claims about R1.6 billion back-pay liability

Tshwane Mayor Nasiphi Moya has dismissed the DA’s claims that residents and businesses could shoulder the cost of a potential R1.6 billion back‑pay liability for municipal workers dating back to 2021.

The DA raised concerns that without a clear funding source, the payout - stemming from the South African Local Government Bargaining Council ruling in October - could force service cuts or rate hikes.

The bargaining council dismissed the city’s application for exemption from the 3.5% salary increases agreement for the 2021/22 financial year and ordered the payment of up to R1.6 billion in back-pay.

The ruling acknowledged that the 3.5 % backdated pay hike’s financial impact is “very huge”, giving Tshwane six months to implement it.

Moya said the city has been working carefully to ensure that implementation takes place responsibly and sustainably, and within six months.

She said that as part of this process, the city is engaged in constructive discussions with organised labour to determine the most appropriate and financially prudent approach to implementation. 

“These engagements are progressing well and will guide a balanced solution that protects the city’s financial stability while meeting its obligations to employees,” she said.

However, this week, the DA’s mayoral candidate, Cilliers Brink, called on Moya and her administration to reconsider their decision not to take the backdated salary increase award on review. 

“We also call on the city to table a comprehensive budget funding plan in council, so that other difficult decisions can be made to avoid the cashflow crisis that would otherwise follow,” he said.

Brink said the city has solid grounds to challenge the back-pay order, which he said totals R2 billion. 

He pointed out that the municipality has until December 14, 2025, to lodge a review at the Labour Court, arguing the bargaining council ruling was “legally flawed”.

He warned that without court relief, residents could see service cuts or rate increases.

“In these circumstances, the city has an obligation to residents who pay rates, tariffs, and charges to take the R2 billion obligation on review. Refusing even to consider this option will not only prejudice Tshwane’s four million residents,” Brink said.

The South African Municipal Workers' Union accused Brink of advancing anti-worker propaganda, saying his recent statement is a “declaration of open war against the working class and a direct, contemptuous assault on the integrity and legally binding rulings of the collective bargaining institutions of our democracy”. 

“This latest cynical move by the DA is nothing less than a desperate, treasonous attempt to rule Tshwane from the grave, years after their catastrophic mismanagement ended,” said the union.

Tshwane Deputy Mayor Eugene Modise recently said 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.

Moya, on the other hand, said it is important that the ongoing engagement between the unions and the city is allowed to run its course, as it will inform the final implementation plan.

She said the city remains fully committed to maintaining a funded budget while meeting all of its financial obligations, including the payment agreement reached with Eskom last year. 

“To this end, the administration is working to manage the financial implications of the ruling through the 2025/26 adjustments budget process, as provided for in law, and in a manner that preserves the progress made over the past year,” she said.

She reassured residents that the city has “no intention of passing on the cost of implementing the ruling through unreasonable increases to rates or service charges”.

rapula.moatshe@inl.co.za