Backdated local government pay deal signed

2012-07-28 07:28

A pay settlement for employees in the local government sector has been signed, the SA Local Government Association (Salga) said.

“This is historic not only because it provides a platform for stability and certainty for the forthcoming years, but importantly it builds on and consolidates a culture of partnership,” said Salga chairperson Thabo Manyoni.

The deal was signed yesterday.

Members of the SA Municipal Workers Union (Samwu) and Independent Municipal and Allied Trade Union (Imatu) would receive a 6.5% wage increase backdated from July 1 this year, and an additional 0.5% increase from January 1.

Subsequent increases would be linked to the Consumer Price Index.

“This multi-year wage agreement is an example of what can be achieved when parties are committed to achieving a swift and amicable outcome,” Imatu general secretary Johan Koen said in a statement.

Samwu could not immediately be reached for comment.

Manyoni said municipalities were facing a cash crunch as revenues decreased, and consumer debt rose.

“The deal reflects a concrete attempt at achieving that fair balance, given the competing needs of the parties,” Manyoni said.

He said the parties decided to postpone concluding a collective agreement on pension funds until the end of the year.

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