Samwu threatens strike action amid R10bn Joburg wage deal impasse

Samwu in Joburg has not ruled out the possibility of strike action by its 23,000 members as tensions escalate over the city’s proposed R10.3bn wage deal. The union said it is meeting with its members next week to map a way forward and that the withdrawal of services by workers was also on the table. This move follows a decision by finance minister Enoch Godongwana to halt the implementation of the deal, deeming it unsustainable and a threat to the city’s financial stability.

He also threatened to withhold grant funding if the city fails to fix its financial management, which includes R25.2bn owed to creditors. Samwu regional leader Lebogang Ndawo said the minister’s decision undermines the workers and the courts. “As a union, we don’t believe the deal has been halted.

He [Godongwana] might have written a letter, but that letter does not carry the weight of a court order. He’s acting beyond his powers. That’s why we’re saying the letter itself exceeds the authority he’s been granted, because it undermines labour bargaining and collective agreements, which is not his scope,” he said.

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“The city’s wage bill is about 20% of the budget. We are far from the issue of budgets.” Ndawo said the union will be meeting with members to discuss a way forward but did not rule out industrial action. He did not want to elaborate on when the protest would be and what shape it would take.

The protest could lead to a collapse in service delivery and cause a political headache for the ANC ahead of the local government elections in November. Meanwhile, Joburg mayor Dada Morero has called for calm. On Thursday night he told Sowetan he has met with the Auditor-General to discuss the matter and is expecting to meet with Godongwana on Friday morning for further talks.

“Post that meeting [with Godongwana] we will then be able to give you a fully informed report on the discussions that we had in relation to the letter,” Morero said. “I want to assure residents, stakeholders, investors, and the broader public that there is no cause for concern.

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