Metro wins in Labour Court over wage increase dispute

The Citizen

12-05-2025

The metro has secured a legal victory in the Labour Court, effectively nullifying the enforcement of a 5.4% salary increase for municipal workers as stipulated in a collective agreement.
Judge AJ Snyman delivered the judgment on May 10, siding with the municipality's assertion of financial incapacity to fulfil the wage hike obligations.
The legal battle goes back to a 2021 dispute when the South African Local Government Bargaining Council (SALGBC) mandated a salary increment for that year.
The metro, citing budgetary constraints, failed to implement the increase, leading to a compliance order and subsequent protests in 2023.
These demonstrations, marked by disruptions in waste collection and municipal bus services, spanned three months and resulted in damage and vandalism to city infrastructure.
In his ruling, the judge acknowledged the city's financial hardships, emphasising that the municipality's request for exemption from the collective agreement was justified, given its economic challenges.
The court's decision effectively rejects the unions' demands for the wage increase, highlighting the importance of fiscal responsibility in municipal governance.
DA Tshwane caucus leader, Cilliers Brink, welcomed the court's decision, saying that it allows the city to use funds towards stabilising finances and enhancing service delivery.
'The council's decision to apply for exemption was very difficult and was not made to spite or punish employees. The exemption application was essential to the financial rescue mission in Tshwane,' Brink remarked.
He further noted that the R600-million saved has facilitated a debt settlement agreement with Eskom and will enable future investments in essential services.
Grandi Theunissen, leader of the Freedom Front Plus in Tshwane, also expressed approval of the Labour Court's ruling.
He criticised the SALGBC for unfairly dismissing the city's exemption applications and highlighted the VF Plus' commitment to responsible financial management during its tenure in the previous coalition government.
'The Labour Court also found that the SALGBC did not give the metro a fair opportunity to present its case and that the financial information was misinterpreted,' Theunissen said.
However, the South African Municipal Workers' Union (SAMWU) has expressed strong opposition to the Labour Court judgment.
The union contends that the decision undermines collective bargaining, a fundamental right of workers.
They argue that the court overstepped its authority by substituting the SALGBC6s decision with its own, thereby setting a dangerous precedent.
The union also asserts that this move threatens the autonomy of bargaining councils and could embolden other municipalities to avoid honouring wage agreements by citing unverified financial distress.
Nkhetheni Muthavhi, deputy general secretary of SAMWU, criticised the court for disregarding critical evidence presented during arbitration, including an independent financial expert's report confirming the metro's ability to afford the agreed-upon wage increases.
'The union would like to emphasise that the adverse impact of this judgment will have on workers, especially amid rising living costs,' said Muthavhi.
He argued that the court decision prioritises the metro's fiscal arguments over the constitutional rights and well-being of the workers.
In response, the union is at present exploring legal avenues, including appeals to the Labour Appeal Court or the Constitutional Court, to challenge what they perceive as judicial overreach and misapplication of affordability criteria.
The union also condemned the metro management of the time for creating the financial crisis through mismanagement and pursuing a political agenda that attacks workers' rights.
He also commented on the present coalition government.
'It is important to emphasise that the new administration inherited and regrettably, continued the DA's witch hunt against workers, prioritising the DA's inherent animosity towards workers and neglecting the needs and livelihoods of those who serve this city,' said Muthavhi.
'We will not allow workers to bear the brunt of mismanagement and judicial bias. This judgment represents a setback, but we remain resolute in our commitment to defending workers' rights.'
The union said that it plans to brief shop stewards and convene mass meetings with members to provide updates and determine the way forward.
'The union urges all members to remain united and vigilant as they continue to fight for their rights through all available legal and collective channels,' said Muthavhi.
The metro was approached for comment, but none had been received at the time of publication.
Do you have more information about the story?
Please send us an email to [e-mail] or phone us on 083 625 4114.
For free breaking and community news, visit Rekord's websites: Rekord East
For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok.
At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!