Salga says majority of municipalities can’t afford to pay workers

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Salga says majority of municipalities can’t afford to pay workers
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According to Salga, 66 municipalities are considered by National Treasury to be 'severely financially distressed'.

Wage negotiations at local government level will resume on Monday , with the parties still being far apart. The previous wage agreement lapsed at the end of June and it is not yet clear whether the new agreement will be for the current year only or for multiple years.

According to Salga, the 66 municipalities considered by National Treasury to be “severely financially distressed” and the 157 that are considered “financially distressed” have severe affordability issues and the parties should acknowledge this.Salga proposes that these municipalities be allowed to submit applications to pay the increases when their finances have improved substantially and be required to provide financial recovery plans to ensure that they do take steps to improve their finances.

A tractor driver, for example, earns almost R290 000 per annum. This includes a monthly salary of about R13 700, annual bonus, housing allowance, contribution to the medical fund, pension contribution, unemployment insurance, and group life insurance.

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