Wage talks between Samwu and City of Tshwane break down, leaving workers in limbo
The Commission for Conciliation, Mediation and Arbitration (CCMA)-facilitated talks between the South African Municipal Workers Union (Samwu) and the City of Tshwane on June 10 and 23, 2025, broke down without an agreement over the outstanding 3.5% wage increase for the 2021/22 period.
The talks followed a May 9 Labour Court ruling, which sent the matter back to the South African Local Government Bargaining Council for a new hearing on the 3.5% wage increase after the city initially sought an exemption.
In the same breath, the court ruled that the city is exempt from implementing a 5.4% wage increase for the 2023/2024 financial year after it cited financial constraints.
The city approached the court after its application for exemption from a wage agreement with the unions was rejected by the bargaining council.
Samwu regional secretary Donald Monakisi said the union has formally appealed against the ruling on the 5.4% salary increase and is waiting for the Labour Appeal Court to schedule a hearing date.
Regarding the outstanding 3.5% salary increase, he said both the union and the city failed to reach an agreement during the recent CCMA-led negotiations regarding the process to finalise such an increase for municipal workers.
He said the bargaining council has scheduled the exemption hearing for July 21, 2025.
Monakisi explained that the CCMA-facilitated talks were held ahead of the upcoming exemption hearing at the bargaining council, in an effort to narrow down the issues in dispute and explore possible settlement options that could be formalised as a bargaining council award.
However, the meetings failed to yield consensus between the two parties, but they agreed on the value of ongoing dialogue before the scheduled hearing.
Monakisi said Samwu remains committed to these discussions, hoping to reach a mutually beneficial resolution in the best interest of workers.
'The union remains relentless in its position that the 3.5% salary increase, owed to workers from 2021, must be honoured. The prolonged delay in payment has imposed significant financial strain on municipal workers, who continue to provide essential services under increasingly difficult conditions. In this regard, Samwu's legal team is diligently preparing for the exemption hearing, with the aim of securing a just outcome for our members,' he said.
Monakisi emphasised that the City of Tshwane has confirmed the availability of funds to meet its obligations to employees.
He was referring to Mayor Nasiphi Moya's State of the Capital Address two months ago, where she noted Tshwane's improving financial outlook due to decisive actions and increasing resident support.
'We are proud to report that our cash reserves are projected to reach R2.86 billion in the 2025/26 financial year. This marks an important step toward financial stability, with our liquidity coverage improving from 23 days to 43 days over the next two years,' she said.
The Independent Municipal and Allied Trade Union demanded transparency and accountability, arguing that the city cannot claim financial stability for the public while citing financial distress as a reason for not paying its workforce.
Last month, the city and both unions jointly acknowledged the strain the ongoing wage dispute had placed on municipal employees.
'The city reaffirmed its appreciation for the dedication of its workforce and its commitment to working collaboratively with organised labour to find a fair and sustainable resolution,' parties said in a statement.
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