MUNICIPAL workers will be smiling all the way to the bank at the end of this month, thanks to the South African Municipal Workers' Union (Samwu).
The union has secured an above-inflation salary increase for water sector employees.
Dumisane Magagula, Samwu's general secretary, announced on Thursday, 11 July, that the wage increase agreement was concluded with Mzansi's seven Water Boards under the Amanzi Bargaining Council (ABC).
"These Water Boards are collectively responsible for over 95% of bulk water provision in the country.
"Under the terms of this agreement, workers will receive a salary increase of 7%, and housing allowance shall be increased to R3 700 per month per employee. Additionally, all employees within the ABC bargaining unit will see their annual leave entitlement increase to 30 days," he said.
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Magagula highlighted that the parties have also committed to ongoing discussions on several key issues, including pay progression, post-retirement medical aid, and the introduction of a remote work policy.
The deal, effective from 1 July to 30 June 2025, surpasses the 5,2% inflation rate recorded in April and May.
He said that several other demands will be addressed at the plant level, where individual entities will negotiate directly with organised labour to reach local agreements.
"These outcomes are significant for us as a union. They signal the end of an era where employers could offer salaries that fall below the rate of inflation. We have consistently argued that inflation does not accurately reflect the rising cost of living, which workers struggle to keep up with," said Magagula.
Starting Monday, 15 July, Samwu will commence salary and wage negotiations for workers in the country's 257 municipalities.
Magagula expressed hope that the South African Local Government Association (Salga), the employer representative in the South African Local Government Bargaining Council (Salgbc), will present municipal workers with a more favourable offer.
"As a union, we extend our gratitude to our members for their trust in the negotiation team and for the mandate they provided," said Magagula.
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