Outcome of Exemption Application: Beaufort West Local Municipality v IMATU and another (Case No: EX/HQ102102)

The arbitrator has ruled in favour of the Beaufort West Local Municipality and has granted the exemption application from the 2021/24 salary and wage collective agreement.

The arbitrator found that the municipality has severe financial challenges, and despite its recovery plan, its financial status did not improve. Moreover, the municipality’s employment cost as a percentage of expenditure, its collection rates and liquidity management ratios fell short of the national treasury norms, and the municipality was unable to meet its financial obligations, including the payment of salaries.

Accordingly, the arbitrator granted the exemption application for the 2021/2022 financial year.

However, the municipality was ordered to meet with IMATU by 31 May 2022 to engage in bona fide negotiations on possible implementation of the wage increase depending on whether the municipality’s financial situation has improved.

Currently, only 1 exemption application, filed belatedly by the City of Tshwane Municipality, remains and is still in progress.

The status of all exemption applications for the 2021/2022 financial year is as follows:

1City of Cape TownFinalisedExemption denied
2Uthukela District MunicipalityFinalisedExemption denied
3West Rand District MunicipalityFinalisedExemption denied
4!Kheis Local MunicipalityFinalisedExemption denied
5Amathole District MunicipalityFinalisedExemption denied
6Amahlathi MunicipalityFinalisedExemption denied
7Beaufort West MunicipalityFinalisedExemption granted
8The City of TshwaneNew applicationIn progress

Outcome of Exemption Application – Beaufort West LM v IMATU and SAMWU- EX-HQ112102