City of Tshwane has no money to pay increases
Is the capital city broke? The City of Tshwane says it has no money to pay salary increases and has not budgeted for any increases.
The City of Tshwane has filed an application to be exempted from paying the salary increases with the South African Local Government Bargaining Council(SALGBC), citing its terrible financial standing.
CITY OF TSHWANE IS BROKE
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In July, Mayor Cilliers Brink revealed the financial constraint the City was currently facing and admitted to failing to province some basic services. The City currently owes Eskom and Rand Water billions of rands.
In a statement, the City says, “Its application is anchored on irrefutable evidence of its financial position, which is the main reason why there was no budget appropriation for salary and wage increases for the 2023/24 financial year.
The unfunded budget was approved by the majority of parties represented in Council at the end of May this year and the funding plan was given the green light by both Provincial and National Treasury.
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CITY ORDERED TO PAY INCREASES
SAMWU welcomes SALGBC compliance order directing City of Tshwane to pay workers’ salary increases within 10 days. pic.twitter.com/Rv09cpCkYH
— SAMWU | SA Municipal Workers’ Union (@SAMWUnion) July 27, 2023
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Two weeks ago, the SALGBC had ordered the City to pay 5,4% salary increases as per a 2021 salary and wage collective agreement between the City and trade unions SAMWU and IMATU.
SALGBC orders the City of Tshwane to:
- Salary increase of 5,4% effective from 1 July 2023
- Increase minimum wage to R9531.54
- Increase homeowners allowance to R1011,77
- All linked benefits and conditions of service to be increased by 5,4% effective from 1 July 2023.