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Durban - Municipal worker unions and the SA Local Government Association (Salga) have a new proposed pay settlement to consider.
Both parties said in Durban on Thursday that facilitator Younis Shaik had tabled a new proposal for them to think about. His previous one was rejected on Wednesday.
Unions and Salga have until July 19 to seek approval from their members for the new offer.
The facilitator had proposed a 6.5% increase for 2012/2013, effective from July 1, with an additional 0.5% increase from January 2013.
In the 2013/2014 year, the proposal is for a consumer price index (CPI) average plus 1.25%, and a CPI average plus one percent in 2014/2015.
This was an improvement over the previous proposal of a 6.5% increase for 2012/2013, with a consumer price index (CPI) average plus 0.78% for 2013/2014, and a CPI average plus one percent in 2014/2015.
At the start of negotiations in May, unions wanted a 15% increase. Salga offered four percent.
Independent and Municipal Allied Trade Union secretary general Johan Koen said the latest offer still had to be taken back to the members.
"We believe this is the best deal for all the parties," said Koen.
He said the union leadership had taken into account that more than 100 municipalities were in financial crisis when taking the latest offer back to its members.
SA Municipal Workers Union general secretary Mthandeki Nhlapo said he could not discuss the latest proposal until union members had had a chance to review it.
Salga's human capital director Zwe Ndlala said municipalities would consider the offer.
