SAMWU Reaches Agreement with SALGA

17 August 2018

SAMWU Reaches Agreement with SALGA

The South African Municipal Workers’ Union (SAMWU) has reached an agreement with the employer body the South African Local Government Association (SALGA) in the South African Local Government Bargaining Council.

The agreement was reached after salary and wage negotiations deadlocked and the rejection of the facilitator’s proposal resulting in the lodging of two separate dispute. SAMWU has always maintained that the facilitator’s proposal could not be accepted in its current form, particularly given the fact that it was overwhelmingly rejected by municipal workers.

We fought hard to ensure that in the difficult economic and political climate which we were negotiating in that our members could get the best deal possible. These negotiations had been protracted to a point wherein municipal workers had become frustrated as the previous agreement had lapsed and they did not know what increment they would be getting.

This agreement is based on the arbitration award issued by Mr P.Stone to hear the case on the 23rd July 2018. SAMWU influenced the discussion and decision to submit a joined trade union position which would prioritize low earning employees, those currently earning below the R9000 threshold per month.

The signed agreement is thus as follows;
1. A 3 year agreement effective 1 July 2018 to 30 June 2021
2. A 7% salary increase across the board for all employees
3. An additional 0.5% salary increment for employees earning below R9000 effective 1 October 2018.
4. Projected CPI plus 1.5% in the second year of the agreement.
5. Projected CPI plus 1.25% in the third year of the agreement.
6. Sectoral minimum wage to increase by 7% to R73240.24 effective July 2018, and a further increase by an additional 0.5% in January 2018.
7. Home owners allowance to increase by 7% and in line with the agreed salary increment for the duration of the agreement.
8. Non-pensionable allowance of R350 for employees earning less than R9000, this to increase by the same salary increment for the duration of the agreement.
9. Maximum employer contribution towards medical aid will also increase by the same salary increment for the duration of this agreement.

This, therefore, means that municipal workers will be receiving their next salaries with the 7% salary increase backdated to 1 July 2018. Employees falling under the R9000 threshold will receive an additional 0.5% salary increment as of the 1 October.

We believe that this is the best deal we could achieve especially when one looks at the agreements which have been reached by other sectors in the country. In fact, municipal workers will be receiving a higher increase than public servants.

Parties will therefore be speedily be concluding on pension fund restructuring and the Wage Curve. We are of the view that once the Wage Curve has been concluded, our members will be set to receive another salary increment as this agreement will be in their favour.

As these negotiations have been concluded, we will be going back to the drawing board to re-strategies on how we will be approaching the next negotiations. We will first convene a Bargaining Conference which will characterize the posture which shall be taken as we negotiate again.

We thank our members for the patience and faith they have shown in the union to ensure that we get the best deal possible without having to go to the streets for their conclusion. We further than the negotiation team for the dedication and work put into these negotiations in the interest of our members.

Issued by SAMWU Secretariat

Simon Mathe
General Secretary
079 887 8389


Papikie Mohale
National Media Officer
073 710 0356