A R3000 monthly rent allowance, a R200000 housing subsidy and a R5000 minimum salary for every job within a sector.
These are the demands being put forward by the South African Municipal Workers Union, which has threatened to go on strike since Monday.
"There is no money. These demands are too much and are unreasonable," said South African Local Government Association spokesperson Mogomotsi Modiri yesterday.
He said most municipalities were struggling financially and were owed billions of rands in rates and taxes.
Modiri said: "The demands will lead to the total collapse of municipalities. This means that we must stop funding for service delivery and pay them instead."
The Cosatu-affiliated union said the countrywide strike is meant "to bring municipality services to their knees".
Meanwhile, the Independent Municipal and Allied Workers Union said it will not be joining the strike.
The union said yesterday it was satisfied with the offer.
"Their members will be working, especially at clinics and emergency services departments," Independent Municipal workers Union said in a statement.
"In every municipality across the country, big or small workers will be on strike."
Samwu is demanding a 15percent a wage increase across the board.
The union is also demanding that agreements be applied for a period of one year, instead of the current three years.
The workers current housing subsidy is R85000, while the minimum salary is around R2800, depending on the workers' grading and the municipality they work for.
"We will be mobilising in all provinces to make sure that our members are ready," said," Samwu spokes-person Dumusani Langa said.
Workers in Johannesburg are set to meet at midday today at Mary Fitzgerald Square in Newtown.