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The City of Tshwane cannot afford to give into the South African Municipal Workers Union members demadnd of a 5.5% increase. Tshwane mayor Cilliers Brink writes that if the proposed increases were paid, the City would be unable to make payroll or to pay over pension contributions.
This past weekend, a City of Tshwane employee was hijacked, shot and left for dead while performing his duties. Every indication is that the attack is linked to the unprotected strike by the South African Municipal Workers Union (Samwu).
The same group of people who perpetrated the attack had earlier warned the official not to work. This despicable incident represents a shocking escalation of an unlawful strike which is now entering its fourth week. It must be condemned in the strongest terms by everyone who values the rule of law and respect for human life.
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I wish to explain why the City of Tshwane simply cannot and will not give in to the demands of Samwu.
The strikers' core demand is for a 5.5% salary increase which will cost more than R600 million per year. There is no way that the City can afford this. At present, the City of Tshwane's budget for the 2023/2024 financial year is underfunded by about R3 billion, and so the City has been forced to adopt an unfunded "budget plan" which has been approved by National Treasury.
As I have stated several times: if we were to pay these proposed increases today, within two to three months the City would be unable to make payroll or to pay over pension contributions.
Four crises
The City’s terrible financial predicament has been caused by four interconnected crises.
First, in 2019/2020, salary increases were granted outside of collective bargaining and under pressure of unprotected strike action. Second, the seven months of Covid-19 lockdowns during 2020 coincided with the ANC provincial government placing the City of Tshwane under administration. This intervention was later found to be unlawful, but not before internal systems and controls were undermined, causing revenue to collapse.
Third, stage 5 to 6 load shedding has had a devastating effect on electricity sales and service infrastructure, with the previous financial year's under-collection on electricity exceeding R2 billion.
READ | City of Tshwane off to bargaining council over refusal to grant salary increases
Fourth, the unlawful and financially disastrous PEU/TUMS prepaid electricity contract, entered into by the previous ANC regime in 2013, has given rise to massive cash flow and balance sheet pressure. Most notably, this includes a multibillion Rand VAT liability which is now being urgently addressed.
The attempted murder of the City of Tshwane employee accords with many of the tactics of violence that have been employed during the strike. Last week, a water valve in Soshanguve was tampered with, leading to reservoirs being depleted. Municipal buses have been stoned, nurses and patients have been forcibly removed from clinics, the Hatherly landfill was set on fire, and the entrances to numerous depots have been blocked by cars.
We are doing everything we can to bring this unlawful strike to an end. Just days after the strike began, the City obtained an interdict against the striking workers. This was accompanied by several ultimatums ordering workers to return to work. So far, more than 90 employees who have been unable or unwilling to explain their absence from work have been dismissed.
Return to court
The City made an unsuccessful attempt to have Samwu and various striking employees declared to be in contempt of court, and we will be back in court imminently to revive this legal strategy. A contempt order will enable more decisive law enforcement action to be taken, including the arrest of striking workers.
MMC Themba Fosi and I visited the injured City of Tshwane employee who is recuperating in hospital and extended our sincere sympathy to him. I wish to also express my gratitude to the many thousands of City employees (indeed, the vast majority of employees) who are bravely doing their jobs in extremely difficult circumstances. They represent the very best of Tshwane and their dedication has ensured that most of the City’s facilities remain open and functioning, albeit in far from satisfactory circumstances.
I must be absolutely clear: Samwu’s violence has only fortified our resolve. Under absolutely no circumstances will we repeat the mistake that was made in 2019 when City authorities caved to union demands under threat of violence and intimidation. In fact, it is my firm belief that no dialogue about this matter should even be entered into until the unprotected strike action has been brought to an end. Finally, we will not rest until the perpetrators of the appalling violence and criminality are apprehended and are subjected to the most severe possible criminal and civil sanctions.
- Cilliers Brink is the executive mayor of Tshwane
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