Salga, municipal unions reach salary agreement

Salga, municipal unions reach salary agreement

The South African Local Government Association (Salga) says it's reached a wage agreement with municipal unions.

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Negotiations with the South African Municipal Workers (Samwu) and the Independent Municipal and Allied Trade Union (Imatu) had dragged on since March - with a nationwide strike threatened at some point.

Salga says a collective three-year salary and wage deal was agreed to at the SA Bargaining Council on Wednesday.

"The salary and wage negotiations have now concluded and a collective agreement covering 2021/2022 & 2023 was voted unanimously which has a package of elements," Salga said in a statement.

It says the package also includes pension fund reforms, a financial relief mechanism for municipalities in financial distress and for the terms of the agreement to be revisited should unforeseen negative economic circumstances arise during the period of the agreement.

The parties have also agreed to zero percent increases in some benefits, including medical aid.

"The collective agreement, in respect of this current financial year, stipulates that all municipal employees shall receive an increase of 3.5% with effect from 1 July 2021, a period in which the remuneration of municipal employees is adjusted every year, and a once-off non-pensionable cash allowance.

"The new collective agreement represents a compromise for all the parties and on the other hand, it gives municipalities who are in financial distress a lifeline and a breathing room until 2023. 

"It also means that should municipalities experience even more difficulties going forward, they will have an opportunity to revisit the terms of the agreement."


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