The City of Cape Town does not support salary increases for government employees during this trying time for many residents, businesses and citizens

The City of Cape Town does not support salary increases for government employees during this trying time for many residents, businesses and citizens. Our residents cannot afford to pay more in the current economic climate and it is unfair for government workers to receive wage increases when many people have had reductions to their income. The City’s Mayoral Committee has, therefore, mandated the City to approach the South African Local Government Bargaining Council (SALGBC) for an exemption from the new salary and wage collective agreement for local government.

The Collective Agreement contains a 3,5% increase for all municipal employees with effect from 1 July 2021, valid for three years until 2023. The City took a clear stand throughout the bargaining process led by the South African Local Government Association (SALGA), the employer body representing 257 municipalities in the country, that salary increases were not justified or affordable at this time.

‘We’ve maintained the City does not have an allocated budget for salary increases. It has reduced staff-related costs by some R460 million in the current financial year and senior, managerial and executive-level staff increases have not been awarded for two consecutive years already in an effort to reduce costs, maintain service delivery and reduce the impact on customers.

‘Our decision to oppose the wage agreement by asking to be excluded from having to implement the increases has not been taken lightly. City staff and residents have been front of mind, but we strongly believe this is not the right time in South Africa to afford increases to government employees. It is not fair to our residents, many of whom are struggling due to Covid-19 and the national lockdown. The state of the national economy is dire. Resources have been all but depleted over the years. We have already seen large national government budget cuts on important service delivery imperatives such as on human settlements, which is having a ripple effect on local governments. We maintain wage increases at this time are unfair and unaffordable,’ said the City’s Executive Deputy Mayor, Alderman Ian Neilson.

The City will submit its exemption notice in terms of clause 15.1 of the Wage collective agreement with the SALGBC. The implementation of the Wage agreement clause that the City seeks exemption from (namely the awarding of a 3,5% increase effective from 1 July 2021, and ancillary increases), will be suspended pending the outcome of the exemption application.

The process is expected to take at least 30 days from lodging of the exemption with the SALGBC. The City will consider its options once the SALGBC has communicated its decision.

Source: City Of Cape Town