UPDATE ON SALARY AND WAGE NEGOTIATIONS 2024/2025 (UPDATE 1-2024): FIRST ROUND OF WAGE NEGOTIATIONS
The first round of the Local Government wage negotiations for the 2024/2025 financial year commenced on 15 July 2024.
This round of negotiations has been scheduled to be conducted from 15-26 July 2024 and is conducted under the guidance and assistance of two Facilitators appointed by the SALGBC.
The first 3-days of negotiations was largely spent on the motivation phase with parties outlining the bases for their wage demands and counter-proposals. As part of this process, IMATU submitted a comprehensive wage position document in support of our wage demands.
IMATU’s wage position document highlighted the impact of the current cost-of-living crisis on the disposable incomes of our members. In particular, we drew attention to the above inflation increases in the prices of four key areas of household spending such as food, electricity, transport and utilities. A detailed comparison was made with wage increases in other sectors and the financial impact of increases in the cost of housing and medical aid was also thoroughly dealt with. The affordability of the wage demands, a crucial factor in wage negotiations, was addressed through a comprehensive analysis of the financial statements of municipalities. In particular we focused on trends in revenue collection, available surpluses, and the impact of wage increases on the local government wage bill.
IMATU pointed out that the wage bill is currently at reasonable and sustainable levels, well within the range set by national treasury, and likely to remain there, if wage increases are implemented. Finally, it was demonstrated that excessive levels of wastage through fruitless, wasted and irregular expenses are a constant drain on local government finances and ordinary workers cannot be expected to bear the cost of years of financial mismanagement.
Against this background, SALGA cannot be heard to plead poverty in wage negotiations and expect ordinary workers to make sacrifices.
In response, SALGA conducted an extensive response and interrogation of IMATU’s wage position document. IMATU likewise extensively interrogated SALGA on the basis for their counterproposals. These technical discussions took up much of the first 3-days of negotiations.
IMATU also met separately with the Facilitators to highlight areas of possible agreement and disagreement, which will require much work to resolve. IMATU also proposed that certain technical matters such as exemptions be referred to a technical working group that can meet and deal with the matter outside of the negotiations.
The trade unions are currently in the process of consolidating their separate wage demands into a single joint demand. At the same time, it is also evidently clear that the opening demands will have to be revised, if there is to be any prospect of making progress by the end of this round.
The negotiations are ongoing, and the current session is expected to adjourn on Friday, 19th of July 2024 and resume on Tuesday 23 July 2024.
Due to the sensitivity of the engagements, and as per the Facilitators’ instructions, the parties cannot provide any further details, until further notice.
Members will however be notified of further developments as soon as new information becomes available.