The South African Local Government Association (SALGA) and organised labour (South African Municipal Workers Union), concluded a third round of salary and wage negotiations on Friday.
SALGA said in a statement, there is an agreement on the Facilitators’ Proposal, after three rounds of negotiations.
This follows three intense rounds of salary and wage negotiations held on 15-19 July 2024, 23-26 July 2024, and 12-15 August 2024, at the South African Local Bargaining Council (SALGBC). Facilitators issued a Proposal, dated 15 August 2024, which proposes a salary and wage agreement for a five-year period.
This proposal suggests a six percent (6%) wage increase, which all parties will now consider as part of the wage deal.
Should all the parties endorse the proposed salary and wage agreement, it will be effective from the 01st July 2024 until 30 June 2029.
This will be the first ever salary and wage agreement, signed for five-years, in the history of the bargaining council.
Below is a summary of the Facilitators’ Proposal on a salary and wage collective agreement:
Salary Increases
2024/2025 (Year 1): A 6% increase, with 4.5% effective from 01 July 2024 and an additional 1.5% from 01 March 2025.
2025/2026 (Year 2): An increase based on the 2025 CPI + 0.75%, effective from 01 July 2025.
2026/2027 (Year 3): An increase based on the 2026 CPI + 0.75%, effective from 01 July 2026.
2027/2028 (Year 4): An increase based on the 2027 CPI + 1.25%, effective from 01 July 2027.
2028/2029 (Year 5): An increase based on the 2028 CPI + 1.25%, effective from 01 July 2028.
CPI Adjustments: If CPI falls below 4%, it will be deemed 4%. If it exceeds 7%, it will be capped at 7%.
Linked Benefits and Conditions of Service
A 4.5% increase from 01 July 2024, with an additional 1.5% from 01 March 2025.
Subsequent increases will align with salary increments as outlined above.
Parties must still submit their acceptance of the proposal in writing to the SALGBC by 14h00 on the 02nd of September 2024.