Outcome of Exemption Application: City of Tshwane v IMATU and Others (Case No: EX/HQ032201)

IMATU is pleased to share an important update on the long-standing matter between the City of Tshwane and IMATU regarding the City’s application for exemption from the 2021/2022 Salary and Wage Collective Agreement.

Following a Labour Court judgment that set aside the previous exemption ruling and directed that the matter be reheard before a different Commissioner, the new ruling has now been issued, in IMATU’s favour.

The Commissioner has dismissed the City of Tshwane’s exemption application and confirmed that the Collective Agreement remains binding on all signatory parties, including the City of Tshwane.

Key findings include:

• The collective agreement was lawfully concluded and remains binding.

• The City failed to prove any illegality that would prevent implementation of the 2021/2022 salary increases.

• Arguments based on the MFMA and claims of unauthorised expenditure were rejected. Once the agreement was concluded, the City became legally bound to honour it and to make the necessary budgetary provision.

• The City’s failure to budget for the salary increases was deliberate and unjustified, while expenditure in other areas continued to rise.

• The City’s financial position, including improved collection rates and investment balances, did not support claims of unaffordability.

The City of Tshwane has been ordered to comply with the 2021/2022 Salary and Wage Collective Agreement and to implement all outstanding salary adjustments and payments by 30 April 2026.

The extended compliance period was granted in recognition of the significant financial obligations that have accumulated over time due to the City’s legal challenges and delays.

This ruling represents a significant victory for IMATU and our members, reaffirming the binding nature of collective agreements and the importance of compliance with negotiated commitments.

Read the full outcome here: