“Currently the South African Local Government Association (SALGA) is proposing a three year wage agreement, starting with a 6.6% across the board increase in year one, followed by a percentage increase equal to the projected annual Consumer Price Index (CPI) plus 1% in years two and three respectively. We are however standing firm on our demand for an 8% across the board salary increase in the first year, followed by CPI plus 2.25% in year two and CPI plus 2% in year three, should a multiyear agreement be considered,” explained IMATU General Secretary, Johan Koen
IMATU is pleased to report that SALGA has agreed to increase the housing allowance, minimum wage and maximum medical aid employer contribution rate by the same percentage as the annual salary and wage increase. “IMATU is also proposing that in addition to the across the board increase, the housing allowance is increased by a further R150 in year one, R100 in year two and R50 in year three. These increases will assist towards bringing the lagging local government subside in line with its comparable counterparts in the public sector,” explained Koen.
“With regards to employees who do not own property, unions are proposing that the non-pensionable amount be increased to R378 per month in year one, followed by the same salary and wage percentage increase in years two and three. This increase should be extended to all GAP market employees who earn R15 000 and less per month. The employer is currently offering a capped monthly increase of R350 to employees earning less than R8 000 per month,” stated Koen.
It is likely that more time will need to be allocated to the complex issues of housing subsidies and pension funds with in the sector. It is expected that the facilitator’s proposal will make provision for the continued negotiations regarding pension fund contributions and that the housing investigation will be allowed to continue.
The fourth round of the wage negotiations and wage curve negotiations is currently taking place in Durban. Parties have worked hard to reach an agreeable solution that will ensure fair salary increases for workers and the sustainability of the sector. A facilitator’s proposal is expected to be presented later today.
Members will be continually updated as the matter progresses.