A labour union has warned that a standoff between the embattled Enoch Mgijima municipality and its employees over a salary increase is a ticking time bomb as the council digs in its heels.
The Komani-based municipality applied to the bargaining council to be exempted from the annual wage increases in 2023, but the unions — the South African Municipal Workers Union (Samwu) and Independent Municipal and Allied Trade Union (Imatu) — won the hearing.
This paved the way for the implementation of a 5.4% wage increase agreement for municipal employees across the board.
However, the municipality refused to comply and made it clear that it had decided to take the legal route to challenge the award.
Samwu regional secretary Asamza Ntaka said this week the municipality had been tight-lipped over the eagerly awaited salary increase though it was expected to take effect in February.
“[It] seems like Enoch Mgijima has lodged a review application regarding the [bargaining council] award that was in favour of employees,” she said.
“We are expecting the increment to be paid in February but to date nothing has been confirmed by the employer regarding their commitment.
“As Samwu, we have not been served with the application for review by Enoch Mgijima [local municipality].
“This matter seems like an accident that is waiting to happen ... and as Samwu we will meet this weekend to discuss this matter further.
“As far as things stand, we will go back to our members to give them an update and take a mandate from them.
“Should the workers decide to take the matter to the streets, we will do as such, notwithstanding the fact that we may also follow a legal route to [force] the municipality to implement the award, which is in favour of the workers.”
The cash-strapped municipality is implementing corrective measures in line with the recommendations of a national cabinet representative.
The municipality was placed under the administration of the national department of co-operative governance and traditional affairs in 2022 after intervention by the provincial government failed.
Late in 2023, the co-operative governance and traditional affairs portfolio committee in parliament expressed concerns over the slow progress of the intervention, which is being implemented by the municipality’s management.
Municipal spokesperson Lonwabo Kowa previously said the council would take legal action over the wage increase as it continued to push for exemption from the salary hike agreement.
At the time, Kowa said the municipality had made it a priority to reduce its R1.2bn bill, and significant measures had been taken in this regard.
On Wednesday, Kowa said the municipality had decided to seek a review of the matter in the labour court.
He said the municipality believed the complexities of the case merited further examination by the courts before a final decision was made.
“We hope the courts will take a fresh look at all factors involved,” Kowa said.
“The municipality engaged with the relevant unions and held a general staff meeting to inform all employees prior to implementing salary grade changes.
“The unions have not lodged any formal complaints with the municipality aside from expressing eagerness for salary increases for their members.”
Kowa said the council did not anticipate strike action at present.
“All parties were properly informed about the decision-making process,” he said.
“We hope all sides will respect the final court ruling when it is issued.
“The municipality maintained open communication with the unions throughout this process.”
Kowa said the municipality continued to implement its approved financial recovery plan and provided regular progress reports to the National Treasury.
“We have also secured Eskom debt relief, contingent on meeting our debt repayment schedule, which we are currently doing,” he said.
Imatu regional manager Shagan Windvogel did not respond to the Dispatch’s questions by the time of publication.
DispatchLIVE
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.