Wage deadlock threatens councils

Durban - The SA Local Government Association is concerned at the lack of an agreement in municipal salary negotiations, it said on Monday.

"It is regrettable that a settlement has not been reached yet, despite several attempts made since March 30 to reach an amicable agreement," Salga chief executive officer Xolile George said in a statement.

It was disappointing that the conciliator's proposal of 11.5% had been rejected by the South African Municipal Workers' Union (Samwu), he said. The Independent Municipal and Allied Trade Union (Imatu) had accepted the offer.

Samwu and Imatu jointly represent 90% of the 230 000 workers in the local government sector.

George said Salga was prepared to settle at 11.5% if Samwu was prepared to accept it.

"It should be borne in mind that the parties started off far apart with Salga offering 7.2% and unions demanding 26%.

"The conciliator's proposal offered hope for an agreement and Salga is taken aback by the union's intransigence regarding their 15 percent," said George.

George described as unaffordable Samwu's demands of a minimum wage of R5 000, housing loan assistance of 70% of the bond amount to R300 000 and a rental allowance of 70%.

"These demands are unaffordable and unrealistic given the current economic climate and the poor state of municipal finances, as municipalities are owed approximately R30.3bn as at 31 March 2009," he said.

The union's demand that all vacant posts be filled by January 1, 2010 on a permanent and full-time basis was also not affordable.

George called on Samwu to return to the negotiations.

"Negotiations offer the best avenue that will not bring hardships to municipalities, residents and employees themselves", George said.

Samwu secretary in Gauteng, Vincent Vena said they would go back to negotiations if the employer or the conciliator came with a different offer.

"We served them with a certificate for a strike. The national strike will commence on July 27 if nothing happens," he said.

Imatu was not immediately available to comment.

- Sapa