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Salary hikes will hit the taxpayers more in pocket

By Sibongile Mashaba and Kingdom Mabuza | Jul 29, 2009 | COMMENTS [ 0 ]

YOU - the ratepayer - are going to pay for the wage increase demands of municipality workers.

YOU - the ratepayer - are going to pay for the wage increase demands of municipality workers.

South African Local Government Association (Salga) executive director Mzwanele Yawa says the free supply of water and electricity to the poor will be reduced to fund the pay demands.

Yawa says the South African Municipal Workers Union's demand of 15 percent pay hike will cost R40,6billion.

The municipalities maintain they do not have enough funds to meet the strikers' demands.

"Municipalities, especially those that are struggling, could be forced to cut down on certain services," Yawa said yesterday.

"It is unavoidable that communities will carry the burden of the latest offer, but we are also looking at possible solutions to minimise the impact."

The South African Muni-cipal Workers Union is demanding a 15 percent across-the-board increase.

They have threatened to intensify their protest action should Salga not meet their demands.

The 15 percent does not include other demands such as a R200000 housing subsidy and a 75 percent housing loan for a house worth R300000.

Yesterday, employers increased their offer to 13 percent, but the union was reluctant to accept it.

The employer is offering a new minimum wage of R3850 backdated to July 1 2009, and an additional 1,5 percent in January next year.

For the financial year 2011-2012, an across-the-board increase based on CPI plus 2 percent will be effected.


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